Lithium Americas is deemed vital by Trump, but investors beware, J.P. Morgan says

Lithium Americas Corp. saw its stock surge recently after the federal government took a stake in the company, but J.P. Morgan warns that investors should not get carried away with the the lithium producer’s newfound popularity in Washington.

The lithium industry, like those for rare earths and chips,

has been deemed vital for national security by the Trump administration. The element is an important component in rechargeable batteries that power electric and hybrid vehicles, as well as a variety of consumer electronics. Fueled by the Trump administration’s support, Lithium Americas’ stock LAC is up 129.5% over the past month.