Lithium Americas Secures $435M Loan from DOE for Thacker Pass Project
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) has secured a significant financial boost with a non-binding agreement with the U.S. Department of Energy (DOE). The company will receive the first draw of $435 million from a $2.23 billion loan, with the DOE also agreeing to defer debt service over the first five years.
The loan, initially announced at $2.26 billion, has seen a slight reduction to $2.23 billion, with the principal remaining at $1.97 billion. The estimated capitalized interest during construction has also decreased to $256 million. In exchange for the loan, the DOE will receive a 5% equity stake in Lithium Americas and a 5% economic stake in the Thacker Pass lithium project joint venture.
The first watch of $435 million is expected in Q4 2025, with Lithium Americas committing to post an additional $120 million to DOE loan reserve accounts within 12 months of the first watch. Meanwhile, General Motors (GM) will amend its lithium offtake agreement to allow the joint venture to discover additional third-party offtake agreements for certain remaining production volumes not forecasted to be purchased by GM.
This agreement marks a crucial step for Lithium Americas in securing funding for its lithium projects. The loan, along with the amended offtake agreement, positions the company to move forward with its plans while also providing the DOE with a stake in the project's success.
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