Lithium Americas (TSX: LAC) has closed on the previously announced joint venture arrangement with General Motors (NYSE: GM). The arrangement has seen the automaker acquire a 38% stake in the Thacker Pass project, which is found in Nevada.
The joint venture sees Lithium Americas retain a 62% interest in the project, while receiving $625 million in the form of cash and letters of credit in exchange for handing the 38% stake to General Motors. A total of $430 million will be directly funded to the lithium developer in the form of cash, while $195 million is to be provided via a letter of credit facility.
READ: Lithium Americas To Receive $650 Million Investment From General Motors
Sponsored · Cambria Gold Mines
Funding under the joint venture is to be used for the development and construction of Thacker Pass. To date, $330 million in cash has already been provided to the joint venture by GM, while Lithium Americas has provided $138 million. A further $100 million will be provided by GM, and $181 million by Lithium Americas, upon the final investment decision being made for phase 1 of the project.
The letter of credit facility meanwhile is expected to be provided by GM once Lithium Americas makes its first drawdown on the $2.26 billion loan the company has received from the US Department of Energy. That drawdown is currently expected to occur in mid-2025.
READ: DOE Approves $2.26 Billion Loan for Lithium Americas’ Nevada Mine
The final investment decision for Thacker Pass meanwhile is expected in early 2025, with the first phase of the project expected to be completed by late 2027. Phase 1 of the project is targeting 40,000 tonnes per annum of battery-quality lithium carbonate.
Lithium Americas last traded at $4.42 on the TSX.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
