Equity Stake DilutionThe Department of Energy receives a 5% equity stake in LAC and a 5% stake at the GM/LAC joint venture level via low-cost warrants, reducing LAC's joint venture stake from 62% to 59%.
Tariff And Inflation ImpactApproximately 25% of LAC's $2.93B capital cost estimate is likely to be impacted by tariffs, potentially increasing costs beyond the expected 10% capex inflation.
Valuation And Risk ConcernsThere are concerns about valuation and risk/reward due to lithium price levels, capital budgets, timelines, and staffing risks.