US DoE Boosts Stake in LAC's Thacker Pass Lithium Project to 5%
The US Department of Energy (DoE) has bolstered its investment in Lithium Americas Corporation's (LAC) Thacker Pass lithium project. The DoE has acquired a 5% stake in the joint venture with General Motors, strengthening its position in the project while also supporting the Trump administration's supply chain goals.
The updated agreement, worth over $100m (C$139.28m), includes new equity and revised loan terms. The Loan Programs Office (LPO) spearheaded the restructuring, incorporating warrants into the loan's collateral package to safeguard taxpayers' interests. The DoE, LAC, and GM collaborated to enhance the loan's resilience.
The Royal Bank of Canada played a role in the initial financial credit liability booking in 2024 and later renegotiated the agreement in 2021. The equity ownership is structured as LAC warrants and a 5% stake in the form of warrants in the JV. The funds will support the construction of lithium carbonate production facilities at Thacker Pass, projected to yield around 40,000 tonnes per year at full capacity.
The DoE's increased stake in the Thacker Pass project underscores the US government's commitment to securing access to critical minerals and strengthening domestic supply chains, as part of President Trump's agenda. The project is set to contribute to the manufacturing of lithium-ion batteries, supporting the administration's goals for onshoring production.
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