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2h ago

U.S. Takes 5% Stakes in Lithium Americas and Thacker Pass JV as DOE Restructures $2.23 Billion Loan

Officials cast the move as a step toward a resilient U.S. lithium supply chain.

FILE - An "Access Restricted" sign is displayed at the Lithium Nevada Corp. mine site at Thacker Pass, April 24, 2023, near Orovada, Nev. (AP Photo/Rick Bowmer, File)
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FILE - Construction continues at the Lithium Nevada Corp. mine site Thacker Pass project, April 24, 2023, near Orovada, Nev. (AP Photo/Rick Bowmer, File)
FILE - Construction continues at the Lithium Nevada Corp. mine site Thacker Pass project, April 24, 2023, near Orovada, Nev. (AP Photo/Rick Bowmer, File)

Overview

  • Lithium Americas agreed to issue the U.S. government 5% warrant-based stakes in both the company and the Thacker Pass joint venture with General Motors.
  • The DOE authorized an initial $435 million draw on the reworked roughly $2.23 billion loan and will defer about $182 million of early debt service.
  • The government’s equity comes via nominal-price warrants, which the DOE says strengthen collateral and reduce taxpayer risk, with more than $100 million in new equity cited.
  • Shares of Lithium Americas jumped roughly 30% to 43% in late Tuesday and premarket Wednesday trading following confirmation of the deal.
  • GM retains a substantial role with about a 38% position and offtake rights, as Thacker Pass targets roughly 40,000 metric tons per year of battery-grade lithium carbonate in Phase 1 despite ongoing local opposition and litigation history.