Why Lithium Americas Stock Zoomed 132% in 2021
Lithium Americas (NYSE: LAC) shares rocketed 132% in 2021, according to data provided by S&P Global Market Intelligence. The lithium stock lagged through the first half of the year and started to rally only in the latter half. In fact, Lithium Americas would've ended 2021 with even bigger gains had its shares not shed nearly 26% in December. So what was the biggest trigger that fueled the rally, and what can investors expect from Lithium Americas in 2022?
Lithium Americas got a boost right as 2021 kicked off when its Thacker Pass project in Nevada, which had been stuck in a rut for years, received a federal permit. Thacker Pass is said to have the largest lithium resource in the U.S. and holds the key to the company's growth. The market cheered the permit, but the euphoria was short-lived, as the lithium company immediately issued shares worth nearly $400 million to fund the development of Thacker Pass. The stock dilution didn't sit well with investors because the company has yet to start commercial production, although Lithium Americas said it expected to start production at Thacker Pass in early 2022.
Image source: Getty Images.
Source Fool.com