(Bloomberg) — Shares of Lithium Americas Corp. fell the most on record after agreeing to sell 55 million shares at a deep discount.
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Shares of the lithium explorer fell as much as 27% to $4.82 at 9:31 a.m. in New York, the lowest since late February.
Lithium Americas raised $275 million after agreeing to sell shares at $5 each, the Vancouver-based company said in a statement Thursday. The offer was at a 25% discount to Wednesday’s closing price.
Lithium Americas plans to use the proceeds to advance construction and development of its Thacker Pass lithium project in Nevada. The mine is considered one of the most promising opportunities in the U.S. to produce lithium, the battery metal essential for electric vehicles, solar panels and wind turbines.
The Biden administration in March offered a $2.26 billion loan to Lithium Americas to help finance the construction of a lithium carbonate processing plant next to Thacker Pass. The US has stepped up efforts to reduce its dependence on China for battery metals and the electric vehicle supply chain.
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