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Lithium Americas Announces US$625 Million Investment Agreement with General Motors

10/16/2024

On October 16, 2024, Lithium Americas Corp. and General Motors Holdings LLC entered into a new investment agreement to establish a joint venture for the purpose of funding, developing, constructing and operating the Thacker Pass lithium project in Humbolt County, Nevada. The transaction will deliver US$625 million of cash and letters of credit from General Motors to support development of Thacker Pass, alongside the conditional commitment for a US$2.3 billion U.S. Department of Energy loan announced earlier this year.

Under the terms of the investment agreement, General Motors will acquire a 38% asset-level ownership stake in Thacker Pass for US$625 million in total cash and letters of credit, including US$430 million of direct cash funding to the joint venture to support the construction of Phase 1 and a US$195 million letter of credit facility that can be used as collateral to support reserve account requirements under the U.S. Department of Energy Loan. The transaction replaces the US$330 million Tranche 2 common equity investment commitment from General Motors under its original investment agreement with Lithium Americas announced in January 2023.

Cassels is acting for Lithium Americas.

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