Lithium Americas has announced a strategic investment of $250m from Orion Resource Partners, a global investment firm, to advance the development and construction of phase one of the Thacker Pass lithium project in Humboldt County, Nevada, US.
This investment positions the company to be fully funded for construction and provides liquidity to manage corporate overheads and other expenses post-final investment decision.
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Orion has committed to purchasing senior unsecured convertible notes worth $195m and entering into a production payment agreement (PPA) with Lithium Americas.
The PPA involves another $25m in exchange for payments linked to the minerals processed and the gross revenue generated by Thacker Pass.
The combined initial investment of the notes and PPA totals $220m.
Orion has also agreed to potentially purchase another $30m in notes within two years subject to certain conditions.
Additionally, Orion has expressed a non-binding interest in evaluating up to $500m of financing for phase two of the Thacker Pass project.
The investment is expected to close the week of 10 March 2025, subject to the satisfaction of certain closing conditions.
Lithium Americas president and CEO Jonathan Evans said: “Orion’s long-term investing horizon and experience with resource development makes them an excellent partner for Lithium Americas and Thacker Pass and contributes to our strong relationships with General Motors [GM] and the US Department of Energy [DOE].
“Orion’s commitment to this project highlights the strategic importance of Thacker Pass to national security and developing a domestic supply chain, as we work to reduce American dependence on foreign suppliers for critical minerals.”
Phase one of the Thacker Pass project will have an initial production capacity of 40,000 tonnes per annum (tpa) of battery-grade lithium carbonate. Completion of phase one is targeted for late 2027.
The Thacker Pass project is set to become a key supplier for GM, which invested $625m last year for a 38% stake.
Lithium Americas and GM formed a joint venture named Lithium Nevada Ventures to develop the project.
Furthermore, in March 2024, Lithium Americas obtained a conditional commitment for a $2.26bn loan from the DOE to build processing facilities at the Thacker Pass project.
The company expects the initial $220m investment by Orion to meet all remaining equity capital requirements set by the DOE and GM.
Orion managing partner Istvan Zollei said: “Thacker Pass is a world-class project, and we are committed to providing investment solutions for metals and materials critical to sustainable economic growth and the energy transition.”
