(RTTNews) – Canadian mining company Lithium Americas Corp. (LAC, LAC.TO) Wednesday said that, along with its joint venture partner General Motors Holdings LLC, it has reached a non-binding agreement in principle with the US Department of Energy or DOE to advance the first $435 million draw under an earlier announced $2.26 billion DOE loan for the Thacker Pass lithium project.
Under the terms of the agreement, the DOE will defer $182 million of debt service over the first five years. It will also receive warrants representing a 5 percent equity stake in Lithium Americas and a 5 percent economic stake in the joint venture, both exercisable at a nominal price. In addition, Lithium Americas said that it will contribute $120 million to loan reserve accounts within 12 months of the First Draw.
According to Lithium Americas, the DOE loan commitment has been adjusted to $2.23 billion, comprising $1.97 billion in principal and $256 million in capitalized interest, down from earlier estimates due to lower projected rates. The loan will carry an interest rate tied to long-dated U.S. Treasuries, with no spread, and a tenor of about 24 years. The first disbursement is expected in the last quarter of 2025.
Commenting on the developments, Jonathan Evans, President and CEO of Lithium Americas said, “We greatly appreciate the support of the Administration, General Motors and our partners in advancing this vital world-class project. Together, we are onshoring large-scale U.S. lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity.”
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