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6d ago

U.S. Takes 5% Stakes in Lithium Americas and Thacker Pass JV, Clears First $435 Million Loan Draw

Officials cast the equity-for-loan restructuring as a national-security step that safeguards taxpayer funds.

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)
FILE - Construction continues at the Thacker Pass lithium mine on April 24, 2023, near Orovada, Nev. The Biden administration has agreed to provide a $2.26 billion conditional loan to Lithium Americas, Thursday, March 14, 2024, to help cover construction costs of a processing facility at its giant lithium mine in the works in northern Nevada near the Oregon line. (AP Photo/ Rick Bowmer, File)
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Overview

  • The Department of Energy will obtain 5% of Lithium Americas and 5% of the Thacker Pass joint venture with General Motors via no‑cost warrants tied to a reworked federal loan.
  • The Loan Programs Office approved an initial $435 million draw and agreed to defer about $182 million of debt service over the first five years, alongside more than $100 million in new equity.
  • General Motors holds roughly 38% of the project and long‑term rights to first‑phase production, with the JV now permitted to add third‑party offtake for volumes not forecast to be purchased by GM.
  • Phase one of Thacker Pass is projected to produce about 40,000 metric tons per year of battery‑grade lithium carbonate, enough to support up to roughly 800,000 electric vehicles.
  • Lithium Americas shares jumped more than 30% on the news as the move drew comparisons to recent U.S. government stakes in Intel and MP Materials and revived debate over governance and local opposition to the Nevada mine.