Lithium Americas Announces Closing of Thacker Pass Joint Venture with General Motors
VANCOUVER, British Columbia–(BUSINESS WIRE)–Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) today announced the closing of its previously announced joint venture (the “JV”) with General Motors Holdings LLC (“GM”) to fund, develop, construct and operate Thacker Pass in Humboldt County, Nevada to supply battery-quality lithium carbonate for the North American critical minerals supply chain (“Thacker Pass” or the “Project”).
Lithium Americas now holds a 62% interest in Thacker Pass and will manage the Project. GM has acquired a 38% interest in Thacker Pass for $625 million in total cash and letters of credit (“GM’s JV Investment”), comprised of $430 million of direct cash funding to the JV to support the construction of Phase 11 and a $195 million letter of credit facility (“LC Facility”).
As part of closing, GM has funded $330 million of cash into the JV alongside $138 million2 of funding from Lithium Americas. The remaining $100 million cash contribution from GM, and Lithium Americas’ $181 million contribution, is to be contributed at the final investment decision (“FID”) for Phase 1.
GM will post the LC Facility prior to first draw on the Company’s previously announced $2.26 billion loan from the U.S. Department of Energy (“DOE Loan”), which is expected to occur in the middle of 2025.
Jonathan Evans, President and CEO of Lithium Americas, said :
Together, Lithium Americas and GM are focused on bringing Thacker Pass to production to significantly improve domestic output of critical lithium supply to reduce dependence on foreign suppliers and to start creating new jobs and bringing economic activity to northern Nevada,
“We are targeting to announce the final investment decision in early 2025. Our engineering, procurement and construction management contractor, Bechtel, and other major contractors have been ramping up work at site to de-risk the construction schedule, as we continue to target completion in late 2027.”
As part of the JV close, Lithium Americas and the DOE have concluded an amendment of the DOE Loan documents to accommodate the formation of the JV. The principal terms of the DOE Loan remain unchanged.
READ the latest Batteries News shaping the battery market
Lithium Americas Announces Closing of Thacker Pass Joint Venture with General Motors, sourceREAD the latest Batteries News shaping the battery market
