Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) has announced a significant update regarding its partnership with General Motors Holdings LLC (GM). The collaboration includes extending the outside date for the second tranche of their subscription agreement until the end of the year.

GM has reinforced its commitment by confirming a $330 million investment to develop Thacker Pass, North America’s largest Measured and Indicated lithium resource. Jonathan Evans, President and CEO of Lithium Americas, emphasized the importance of GM’s partnership as they near the final investment decision and finalize the DOE Loan.

Lithium Americas and GM Extend Investment Deadline

The two companies are exploring alternative investment structures. To facilitate these discussions, Lithium Americas has agreed to postpone unilateral action on the investment closure until December 20, 2024.

Conditional Elements of the Investment

GM’s continued investment is subject to conditions outlined in the second tranche subscription, including the finalization of a $2.26 billion loan agreement with the U.S. Department of Energy (DOE) under the Advanced Technology Vehicles Manufacturing Loan Program. This completion is essential for securing further investment and rights related to Phase 2 of Thacker Pass.

Previous Agreements and Developments

On January 30, 2023, the original agreement with GM included a $650 million equity investment aimed at constructing Thacker Pass. This was divided into two tranches, with the first $320 million tranche closed on February 16, 2023. Following a significant corporate restructuring, the second tranche will now be managed by Lithium Americas.

About Lithium Americas

Lithium Americas is dedicated to developing the Thacker Pass project responsibly. Located in Humboldt County, northern Nevada, this venture is poised to produce 40,000 tonnes per annum (tpa) of battery-grade lithium carbonate initially, with plans for expansion. They have collaborated with Bechtel for the construction and labor agreements, expecting to generate approximately 1,800 direct jobs during the project’s three-year build.

Investors and stakeholders remain bullish on Lithium Americas as it makes strides in reinforcing the U.S. lithium supply chain through strategic partnerships and robust investment management.

Disclaimer:
The content presented on this page has not been manually verified by our team. While we strive to ensure accuracy, we cannot guarantee the validity, completeness, or timeliness of the information provided. Always consult with appropriate professionals or sources before making any decisions based on this content.

Click here for more Company News