Lithium Americas has closed a $2.26bn loan from the US Department of Energy’s (DOE) Loan Programs Office to advance the construction of processing facilities at the Thacker Pass lithium project in the US.
Provided through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, the loan will carry interest rates fixed on the date of each monthly advance at the applicable US Treasury rates.
The financing will cover interest accrued during the construction phase. The funds are set to support the development of the American lithium project’s Phase 1, which aims to produce 40,000 tonnes per annum (tpa) of battery-quality lithium carbonate.
A final investment decision (FID) and full notice to proceed (FNTP) are anticipated by the end of the year.
Phase 1 of the Thacker Pass lithium project is estimated to generate around 1,800 direct jobs during its three-year construction period, along with 360 full-time roles over its expected 40-year operational lifespan.
Lithium Americas president and CEO Jonathan Evans said: “We’re pleased to have the Department of Energy’s support to advance Thacker Pass to production and significantly improve domestic output of critical lithium supply to meet the growing domestic need.
“This essential loan helps us reduce dependence on foreign suppliers and secure America’s energy future.”
Located in Humboldt County, Nevada, the Thacker Pass project aligns with the US government’s commitment to strengthening domestic supply chains for critical minerals, aiming to reduce dependence on foreign sources.
The DOE loan will be supplemented by an investment agreement signed earlier this month between Lithium Americas and General Motors (GM) to establish a joint venture (JV) to fund, develop, construct, and operate the lithium project.
Under the terms of the agreement, GM will acquire a 38% asset-level ownership stake in the Thacker Pass project, contributing $625m in cash and letters of credit.
The DOE loan’s closing follows a conditional commitment received in March 2024. The first loan draw is expected in mid-2025, contingent on several conditions.
The Thacker Pass project is targeting an ultimate production capacity of 80,000tpa of battery-grade lithium carbonate in two phases. The first phase is set to commence production in 2027.
Construction at the Thacker Pass lithium project began in early 2023, with site preparations for major construction now completed.
Detailed engineering, procurement, and execution planning are underway as the company approaches its FID, following the GM joint venture close.
Goldman Sachs & Co served as financial adviser, while Vinson & Elkins acted as legal counsel to Lithium Americas.
