Canadian company Lithium Americas has closed a $2.26bn loan with the US Department of Energy's (DOE) Loan Programs Office under the Advanced Technology Vehicles Manufacturing Loan Program.

This funding is earmarked for the construction of processing facilities at the Thacker Pass lithium project in Humboldt County, Nevada, US.

The loan will support the development of Thacker Pass, which is currently North America’s largest known lithium resource.

The company is on track to make the final investment decision and issue a full notice to proceed by the end of this year.

The mine will be developed in two phases with a total planned production capacity of 80,000 tonnes per annum of battery-quality lithium carbonate.

The first phase is poised to generate approximately 1,800 direct jobs during construction and 360 full-time jobs during its 40-year operational lifespan.

Production at Thacker Pass is expected to start in 2027, contributing to the electric vehicle (EV) sector and supporting up to 800,000 EVs annually.

This aligns with the US clean energy tax credits programme, which incentivises the use of domestically sourced materials for EVs.

Lithium Americas anticipates making the first draw on the DOE loan around mid-2025.

Lithium Americas president and CEO Jonathan Evans said: “We’re pleased to have the Department of Energy’s support to advance Thacker Pass to production and significantly improve domestic output of critical lithium supply to meet the growing domestic need.

“This essential loan helps us reduce dependence on foreign suppliers and secure America’s energy future. We have substantially de-risked project financing for Phase 1 and continue to work closely with General Motors following our announcement of the asset-level joint venture.

“We deeply appreciate the US government’s support as we develop Thacker Pass to become North America’s largest lithium operator and continue collaborating with all our stakeholders to bring shared success for our company, local communities and our country.”

Complementing this financial milestone, an investment agreement with General Motors (GM) was announced on 16 October 2024 to form a joint venture for Thacker Pass.

GM will gain a 38% ownership stake in the project for $625m, including a $195m letter of credit facility to meet reserve account requirements under the DOE loan.