Lithium Americas Secures $435M DOE Loan for Thacker Pass Project
Lithium Americas Corp. has secured a significant milestone in its Thacker Pass lithium project with a non-binding agreement for the first draw of $435 million from a $2.26 billion DOE loan. This comes with adjustments to the loan terms and GM's offtake agreement.
The total expected DOE loan amount has been revised downwards to $2.23 billion, with the principal staying at $1.97 billion. The estimated capitalized interest during construction has also decreased to $256 million. In exchange, the DOE will receive a 5% equity stake in Lithium Americas and a 5% economic stake in the Thacker Pass joint venture.
GM, which initially had the right to purchase up to 100% of Phase 1 production volumes and up to 38% of total production volumes for 20 years, will now allow the joint venture to enter into additional third-party offtake agreements for certain remaining production volumes not forecasted to be purchased by GM.
The first draw of $435 million is expected in the fourth quarter of 2025. However, the First Draw Terms are preliminary and subject to negotiation, completion of definitive agreements, corporate approvals, and other customary conditions. The company intends to rely on the exemption set forth in Section 602.1 of the TSX Company Manual for the transaction.
To facilitate this, the DOE has agreed to defer $182 million of debt service over the first five years of the loan. Additionally, Lithium Americas will post an additional $120 million to DOE loan reserve accounts within 12 months of the first draw.
This agreement marks a significant step forward for the Thacker Pass lithium project. With adjusted loan terms and a flexible offtake agreement, Lithium Americas is well-positioned to proceed with its plans. The first draw in late 2025 will provide the necessary funds to move the project forward, with the DOE's equity stake and debt service deferral offering additional support.
