Lithium Americas has taken the final investment decision (FID) for the first phase of the Thacker Pass lithium mine in Nevada, US.
Furthermore, Lithium Americas has finalised a $250m (C$358.1m) investment from Orion Resource Partners, aimed at the development and construction of phase one of the project.
Orion has acquired senior unsecured convertible notes worth $195m and paid $25m to Lithium Americas in exchange for a share of the minerals produced and the gross revenue from the Thacker Pass project.
Furthermore, Orion committed an additional $30m through a delayed draw facility, contingent on meeting certain conditions.
With this investment, Lithium Americas has secured the necessary funding for the development of the first phase of Thacker Pass at both the project and corporate levels for the entire construction period.
The Thacker Pass project is a joint venture (JV) between Lithium Americas and US automaker General Motors (GM).
GM acquired a 38% stake in the project for $625m in 2024. Lithium Americas and GM have injected $192m and $100m, respectively, into the JV.
The investment from Orion also fulfills all outstanding requirements from both the US Department of Energy (DOE) and GM, meeting the remaining equity capital fundraising obligations under the previously announced $2.26bn DOE loan.
Phase one of the Thacker Pass project is expected to have an initial production capacity of 40,000 tonnes per annum (tpa) of battery-grade lithium carbonate.
The first phase of the project is due to be completed by late 2027.
The project is set to become a key supplier for GM. As per the offtake agreement, 100% of production volumes from the Thacker Pass phase one project will be supplied to GM for a period of 20 years.
Lithium Americas president and CEO Jonathan Evans said: “With our JV partner, GM, we announced FID for Phase 1 alongside our other exceptional partners – the US DOE and Orion. Together, we will develop a US-produced lithium supply chain to reduce American dependence on foreign suppliers for critical minerals.”
