Lithium Americas Secures $435M DOE Loan for Thacker Pass Project
Lithium Americas Corp. has inked a non-binding deal with the U.S. Department of Energy (DOE) for the first watch of $435 million from a $2.23 billion loan. This move, subject to final agreements, supports the 'Thacker Pass' lithium project, a joint venture between Lithium Americas and General Motors.
The DOE will secure a 5% equity stake and a 5% economic stake in the project in exchange for the loan. The total loan amount has been adjusted to $2.23 billion, with the principal at $1.97 billion and estimated capitalized interest during construction at $256 million.
The agreement allows Lithium Americas to post an additional $120 million to DOE Loan reserve accounts within 12 months of the first watch, expected in Q4 2025. The DOE has also agreed to defer $182 million of debt service over the first five years of the loan.
General Motors, an existing partner, will amend its lithium offtake agreement. This will permit the joint venture to discover firm volume commitments with third parties for certain remaining Phase 1 production volumes not forecasted to be purchased by GM.
This agreement marks a significant step forward for the Thacker Pass lithium project. It enables the venture to secure additional offtake agreements, bolstering its financial stability and production flexibility. The DOE's involvement and the adjusted loan terms reflect the project's potential and the U.S. government's commitment to supporting domestic lithium production.
