Lithium Americas secures $250M investment to advance Thacker Pass

Following the announcement, Lithium Americas’ US-listed shares surged 5.6% in morning trading in New York, reaching $2.99 per share and giving the company a market capitalization of $656 million.

Thacker Pass, home to the largest known measured and indicated lithium resource in North America, was approved by the Trump administration in January 2021, just days before President Joe Biden took office.

The project is slated to begin production later this decade and is set to become a critical supplier to General Motors (NYSE: GM), which invested $625 million last year to acquire a 38% stake.

To develop the site, Lithium Americas and GM established a joint venture, Lithium Nevada Ventures, which is expected to generate nearly 2,000 direct jobs.

Once operational, Phase 1 of Thacker Pass is projected to produce 40,000 tonnes of battery-quality lithium carbonate annually, enough to power up to 800,000 electric vehicles. Completion of Phase 1 is targeted for late 2027.

Orion’s financial commitment

Orion’s investment includes $195 million in senior unsecured convertible notes, a $25 million Production Payment Agreement, under which Orion will receive payments based on minerals processed and gross revenue generated by Thacker Pass and an additional $30 million in convertible notes, which Orion has committed to purchasing within two years.

Orion has tentatively agreed to evaluate financing of up to $500 million for the construction and development of Phase 2 of Thacker Pass.