TLDR
- Lithium Americas secures $435M to boost Thacker Pass lithium project.
- DOE’s $2.23B loan backs U.S. lithium production and EV growth.
- Flexible 23-year loan structure fuels project expansion in Nevada.
- GM partnership drives Thacker Pass toward full-scale lithium output.
- Thacker Pass cements role in strengthening America’s EV supply chain.
Lithium Americas Corp.(LAC) stock closed at $6.98 on October 20, marking a 2.80% daily gain.
Lithium Americas Corp., LAC
The rise came after the company secured a $435 million loan drawdown from the U.S. Department of Energy. This funding supports the construction of processing facilities at its Thacker Pass lithium project in Nevada.
The loan is part of a larger $2.23 billion commitment under the Advanced Technology Vehicles Manufacturing Loan Program. With this financing, the company moves forward with developing one of the largest known lithium reserves globally. The funds will accelerate construction and strengthen the U.S. lithium supply chain.
The company continues work on Phase 1 of Thacker Pass, targeting 40,000 tonnes per year of lithium carbonate production. This progress comes amid growing demand for battery-grade lithium driven by the EV sector. The funding solidifies the company’s role in domestic lithium sourcing.
DOE financing structure provides long-term backing and repayment flexibility
The U.S. Department of Energy structured the $2.23 billion loan with $1.97 billion in principal and $256 million in capitalized interest. The interest rate is based on the long-dated U.S. Treasury rate, with no added spread. The total loan has a tenor of 23 years, with repayment starting in January 2029.
The company can draw monthly from the loan, pending standard construction loan conditions. There are no financial model bringdown clauses for future disbursements. This flexible structure allows the company to access capital in alignment with project needs.
The company may repay the loan early by covering principal and accrued interest. This clause gives the company room to adjust financing based on market conditions. Overall, the terms support uninterrupted development of Thacker Pass.
Thacker Pass development progresses as domestic lithium supply chain takes shape
Lithium Americas holds a 62% stake in the Thacker Pass project and serves as its operator. General Motors Holdings LLC owns the remaining 38% through a strategic joint venture. The project is situated in Humboldt County, Nevada.
The company and Bechtel signed a labor agreement with North America’s Building Trades Unions for construction. Work on the processing facilities is already underway, supported by a growing skilled workforce in the region. The workforce is housed in a dedicated facility constructed by the company in Winnemucca.
The project aims to become a cornerstone of the U.S. battery materials sector as it scales operations. With federal support and a committed construction team, Lithium Americas is positioning itself as a key domestic supplier. Continued progress at Thacker Pass underscores growing momentum in critical mineral development.
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