Summary by Futu AI
Lithium Americas Corp. (LAC) and General Motors (GM) have finalized a joint venture agreement for Phase Two of the Thacker Pass lithium project. The agreement includes GM's commitment to purchase lithium carbonate from Phase Two, with an anticipated production capacity of approximately 40,000 tonnes annually. GM will receive a 38% equity stake in the joint venture in exchange for a $330 million cash investment and $100 million in FID capital contributions.The agreement establishes comprehensive governance structures and operational frameworks, including GM's right of first offer for Phase Two product. LAC will serve as the operator through its management services agreement. The joint venture includes provisions for environmental stewardship, responsible sourcing, and compliance with the Inflation Reduction Act requirements.The transaction demonstrates the strategic importance of securing domestic lithium supply for EV battery production. The joint venture will help accelerate the development of Phase Two at Thacker Pass, strengthening North American supply chain capabilities for critical battery materials.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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