The Zhitong Finance App learned that Deutsche Bank downgraded the rating of Lithium Americas (LAC.US) from “buy” to “hold,” and lowered the target price from $25 to $7. The reason is that the company's valuation was too high after spin-off Lithium Argentina (LAAC.US), and the execution risk of the Nevada Thacker Pass project increased.

The Thacker Pass project has received support from GM and the US Department of Energy, but Deutsche Bank analyst Corrine Blanchard believes that execution risks associated with early asset development have increased.

Blanchard gave Lithium Argentina a “buy” rating and a target price of $11, saying it “participated in the lithium growth story with low-risk production assets” in the Cauchari-Olaroz lithium salt development project.

By Thursday's close, Lithium Americas was down 10.33% to $8.16.

US lithium stocks fell sharply across the board, and US Alb.US (ALB.US) recorded the lowest closing price in more than two years. Earlier, Bank of America downgraded the US Yabao rating, saying that lithium supply continues to exceed demand.