DoE restructures Lithium Americas deal, secures equity stake in Thacker Pass project
The US Department of Energy (DoE) has restructured its $2.26-billion loan deal with Lithium Americas Corp (LAC), securing equity stakes designed to better protect taxpayers and strengthen domestic supply of critical minerals.
Energy Secretary Chris Wright said on Tuesday that the new terms would give the government 5% ownership in LAC through warrants, along with an additional 5% stake in the company’s joint venture with General Motors (GM) at the Thacker Pass lithium project in Nevada.
“Despite having some of the largest deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket,” said Wright. “Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars."
The revised agreement includes loan amendments, more than $100-million in new equity, and an expanded collateral package. DoE said warrants had been used in previous loan deals, including its 2010 support to Tesla, and were designed to reduce repayment risk for taxpayers.
Located in Nevada, Thacker Pass hosts the largest confirmed lithium deposit in North America. Once operational, it is expected to produce about 40 000 t/y of battery-grade lithium carbonate, enough to supply up to 800 000 electric vehicles.
GM invested $625-million in the project last year for a 38% stake and secured rights to buy all lithium from the first phase and part of the second for 20 years. Under the new arrangement, Washington opted for equity stakes after pushing back on GM’s request to avoid an unconditional offtake guarantee regardless of market conditions.
Currently, the US produces less than 5 000 t/y of lithium at Albemarle’s Silver Peak facility in Nevada, a fraction of global output led by Australia, Chile and China.
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