US DOE takes equity stake in Lithium Americas’ Thacker Pass project
Under the newly revised deal, the DOE will receive 5 per cent equity via warrants in Lithium Americas plus 5 per cent in the Lithium Americas / GM joint venture involved in developing Thacker Pass. The government has also approved a $435 million drawdown from its existing $2.26 billion loan while deferring $182 million in repayments over five years.
The DOE says the restructuring is designed to protect taxpayers, reduce dependence on foreign lithium sources, and accelerate domestic supply chain build-out. The deal also brings in more than $100 million in fresh equity capital to strengthen the project’s balance sheet.
Considered to be one of the largest lithium deposits in North America, Thacker Pass has a planned annual output of around 40,000 tons of battery-grade lithium carbonate – enough to supply several thousand EVs per year once in full operation. The original permit for the project was approved by Trump in January 2021, during his first term as president.
Last year, GM bought a 38 per cent stake in Lithium Americas for $625 million, giving it the right to buy the entirety of the first phase of production – plus lithium from the mine for 20 years during the second phase. This would provide enough lithium for over 1.6 million EVs over the next two decades. The manufacturer itself wants to secure material for one million electric car batteries per year, with deliveries expected to begin in the second half of 2026.
With the US currently producing less than 1 per cent of the world’s lithium, Thacker Pass has a key strategic role to play in the US administration’s goal of onshoring supply chains for batteries and related technologies. US Energy Secretary Chris Wright said of the move: “Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars.”
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