Lithium Americas Corp. has announced the closing of a $2.26 billion loan from the US Department of Energy (DOE) Loan Programs Office to finance the construction of lithium processing facilities at Thacker Pass, Nevada. The loan will support Phase 1 of the project, aimed at producing 40,000 tonnes per year of battery-quality lithium carbonate.
In addition, an investment agreement was reached with General Motors (GM) to form a joint venture (JV) to fund, develop, and operate Thacker Pass. Through this JV, GM will contribute $625 million in cash and letters of credit, securing a 38% stake in the project and extending its offtake agreements for Phase 1 production to 20 years.
The JV provides a strategic boost for the domestic lithium supply chain, helping to reduce reliance on foreign sources.
The transaction replaces the $330 million Tranche 2 common equity investment commitment from GM under its original investment agreement with the company announced in January 2023.
According to Lithium Americas, Thacker Pass represents a significant opportunity to create a North American lithium battery supply chain for electric vehicles.
Key transaction highlights:
- DOE loan: $2.26 billion loan with fixed rates based on US Treasury rates to fund construction, creating around 1,800 construction and 360 full-time operational jobs.
- GM partnership: The largest publicly announced investment by a US OEM in a lithium carbonate project, providing $625 million in cash and letters of credit, along with extended offtake rights.
- Strategic impact: This partnership highlights Thacker Pass as a critical resource for building a domestic supply chain of essential battery materials, aligning with the US goal of strengthening national energy security.
Filed Under: Batteries, Technology News