{"id":3562,"date":"2025-10-02T09:19:23","date_gmt":"2025-10-02T09:19:23","guid":{"rendered":"https:\/\/profitalarm.com\/index.php\/2025\/10\/02\/lithium-americas-and-gm-advance-thacker-pass-with-landmark-federal-funding\/"},"modified":"2025-10-02T09:19:23","modified_gmt":"2025-10-02T09:19:23","slug":"lithium-americas-and-gm-advance-thacker-pass-with-landmark-federal-funding","status":"publish","type":"post","link":"https:\/\/profitalarm.com\/index.php\/2025\/10\/02\/lithium-americas-and-gm-advance-thacker-pass-with-landmark-federal-funding\/","title":{"rendered":"Lithium Americas and GM Advance Thacker Pass with Landmark Federal Funding"},"content":{"rendered":"<\/p>\n

Lithium Americas (TSX:LAC,NYSE:LAC)<\/a> has reached an agreement with General Motors (NYSE:GM) <\/a>and the US Department of Energy (DOE) to unlock the first $435 million installment of a landmark federal loan for its Thacker Pass lithium project in Nevada.<\/strong><\/p>\n

The company confirmed on Wednesday ( October 1) that the DOE will receive warrants giving it a 5 percent equity interest in Lithium Americas and a parallel 5 percent economic interest in the Thacker Pass joint venture with GM. <\/p>\n

The arrangement is part of the terms for advancing the first tranche of a US$2.23 billion federal loan approved in 2024 to finance construction of the project, which is set to be the largest source of lithium in the western hemisphere.<\/p>\n<\/p>\n

The DOE also agreed to defer US$182 million of debt service over the first five years of the loan, while Lithium Americas will post an additional US$120 million into reserve accounts within a year of the funds being drawn.<\/p>\n

Located about 25 miles south of the Oregon border, Thacker Pass has been cast as central to Washington\u2019s push to cut reliance on Chinese-controlled processing and narrow the gap with global lithium producers in Australia and Chile. <\/p>\n

Phase 1 of the project is designed to produce 40,000 metric tons of battery-grade lithium carbonate annually\u2014enough to support roughly 800,000 electric vehicles.<\/p>\n

At present, US domestic lithium output is negligible, limited to Albemarle’s (NYSE:ALB)<\/a> Silver Peak operation in Nevada, which produces fewer than 5,000 metric tons a year. <\/p>\n

By comparison, China processes more than three-quarters of the world\u2019s raw lithium into battery-grade material.<\/p>\n<\/p>\n

\n

Washington\u2019s share finalized <\/h3>\n

The DOE stake comes after weeks of speculation over the size of Washington\u2019s equity interest.<\/p>\n

According to sources in late September, Trump officials had pressed for up to 10 percent, with Lithium Americas countering by offering no-cost warrants for 5 to 10 percent of its shares. The final agreement settled at the low end of that range.<\/p>\n

The warrants issued to DOE will allow the department to appoint an observer to the joint venture\u2019s board meetings for as long as it retains its economic stake.<\/p>\n

If exercised in full, the ownership structure of the Thacker Pass joint venture will be 59 percent Lithium Americas, 36 percent GM, and 5 percent DOE.<\/p>\n

Voting control, however, will remain split 62 percent to Lithium Americas and 38 percent to GM.<\/p>\n

\u201cWe greatly appreciate the support of the Administration, General Motors and our partners in advancing this vital world-class project,\u201d said Jonathan Evans, president and CEO of Lithium Americas.<\/p>\n

\u201cTogether, we are onshoring large-scale US lithium production, strengthening America\u2019s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity\u201d<\/p>\n

For Washington, the agreement marks the latest in a series of moves by the Trump administration to take minority positions in companies deemed critical to US industrial and national security interests.<\/p>\n

US Energy Secretary Chris Wright said in a statement that the Thacker Pass deal \u201chelps reduce the country\u2019s dependence on foreign adversaries for critical minerals by strengthening domestic supply chains.\u201d<\/p>\n

Shares of Lithium Americas surged more than 30 percent in pre-market trading Wednesday following the announcement, extending a rally that began last month when reports of a potential federal equity stake first surfaced.<\/p>\n

The stock had spiked more than 90 percent in late September after Reuters reported the Trump administration\u2019s push for ownership, jumping from about US$3 to over US$6.<\/p>\n

Construction at Thacker Pass is already underway, with more than 600 contractors on site. The mine and processing plant are expected to reach full commercial output in 2028.<\/p>\n<\/div>\n

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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