Lithium Americas Announces Completion of Thacker Pass Joint Venture with General Motors
- 30-Dec-2024 10:30 PM
- Journalist: Phoebe Cary
Lithium Americas Corp. has officially closed its joint venture (JV) with General Motors Holdings LLC (“GM”) to fund, develop, construct, and operate the Thacker Pass project in Humboldt County, Nevada. The project aims to supply battery-grade lithium carbonate to support the North American critical minerals supply chain. As part of the JV, Lithium Americas now holds a 62% stake in Thacker Pass and will oversee its management, while GM has acquired a 38% interest for a total of $625 million. GM’s investment is structured through $430 million in direct cash funding for the construction of Phase 1, as well as a $195 million letter of credit facility (LC Facility).
Upon closing, GM contributed $330 million in cash to the JV, with Lithium Americas providing $138 million. The remaining $100 million from GM and Lithium Americas' $181 million share will be provided upon the final investment decision (FID) for Phase 1. Additionally, GM will post the LC Facility before the first drawdown of the U.S. Department of Energy’s (DOE) $2.26 billion loan, which is expected in mid-2025.
Jonathan Evans, President and CEO of Lithium Americas, emphasized that the collaboration with GM is focused on advancing Thacker Pass to production, significantly increasing domestic lithium supply, and reducing reliance on foreign sources. The project is also expected to generate new jobs and stimulate economic activity in northern Nevada. The final investment decision is anticipated in early 2025, and key contractors, including Bechtel, are ramping up work on-site to mitigate construction risks, with a targeted completion date of late 2027.
In connection with the JV closure, Lithium Americas and the DOE have amended the DOE Loan documents to accommodate the formation of the JV. The principal terms of the DOE Loan remain unchanged, securing the necessary financial support for the project’s development.
Lithium Americas is dedicated to the responsible development of the Thacker Pass project in Humboldt County, northern Nevada, which contains the largest known Measured and Indicated lithium resource in North America. The company is focused on advancing Phase 1 of Thacker Pass toward production, with a target nameplate capacity of 40,000 tonnes per annum of battery-grade lithium carbonate. In partnership with its engineering, procurement, and construction management contractor, Bechtel, Lithium Americas has signed a National Construction Agreement (Project Labor Agreement) with North America's Building Trades Unions for the construction of Thacker Pass. The three-year construction phase is expected to create around 1,800 direct jobs. Lithium Americas' shares are traded on both the Toronto Stock Exchange and New York Stock Exchange under the ticker symbol LAC.