Lithium Americas fully funded to develop Thacker Pass

Lithium Americas has secured full funding for phase one of its Thacker Pass lithium project in Nevada after closing a $US250 million ($395.5 million) investment.

Orion Resource Partners LP is the investor, paving the way for Lithium Americas to announce a positive final investment decision (FID) to develop phase one in partnership with General Motors (GM).

The Orion investment includes $US195 million in senior unsecured convertible notes, a $US25 million payment for future mineral production, and an additional $US30 million available through a delayed draw facility.

Closing Orion’s investment has satisfied all remaining equity fundraising requirements for Lithium Americas’ $2.26 billion loan from the U.S. Department of Energy (DOE).

“With our JV partner, GM, we announced FID for phase one alongside our other exceptional partners – the U.S. DOE and Orion,” Lithium Americas president and chief executive officer Jonathan Evans said.

“Together, we will develop a US-produced lithium supply chain to reduce American dependence on foreign suppliers for critical minerals.”

Simultaneously, GM has provided $100 million and Lithium Americas has invested $192 million in the project, with construction of phase one expected to be completed by late 2027.

Thacker Pass is one of the largest lithium resources globally, with a mineral reserve estimate of 14.3 million tonnes of lithium carbonate equivalent. This represents a 286 per cent increase from a 2022 feasibility study.

Lithium Americas aims to develop the project in multiple phases, with plans to scale production up to 160,000 tonnes per annum (tpa) across four expansion stages of 40,000tpa each.

The company estimates the project will generate an average annual EBITDA of $US2.2 billion.

“Thacker Pass is now the largest measured lithium reserve and resource in the world and has the potential to become an unmatched district, generating American jobs and helping the US regain independence of its energy supply,” Evans said.