Summary
- Lithium Americas receives $250 million investment from Orion Resource Partners for Thacker Pass lithium project
- Target completion for Thacker Pass Phase 1 is late 2027
- Orion enters production payment agreement and evaluates possibility of up to $500 million financing for Phase 2
- Investment expected to satisfy requirements for US Department of Energy loan and General Motors investment
- Final investment decision on project subject to certain conditions, including GM’s approval
Article
Lithium Americas has secured a $250 million strategic investment from Orion Resource Partners, a global investment firm focused on metal and materials projects, for the development of Phase 1 of the Thacker Pass lithium project in Nevada. The target for completion of Phase 1 is late 2027. Orion has also entered into a production payment agreement, where they will pay Lithium Americas $25 million in exchange for payments corresponding to the minerals processed and gross revenue generated by the project. Additionally, Orion has signed a non-binding agreement to potentially support up to $500 million of financing for Phase 2 of the project.
This investment is expected to fulfill all remaining requirements from the US Department of Energy (DOE) and investor General Motors, allowing Lithium Americas to meet all equity capital fundraising requirements under a previously announced $2.26-billion DOE loan. This investment will position the company to be fully funded for the duration of construction, with plans to start drawing on the DOE loan in the third quarter of 2025. The final investment decision on the project is still subject to certain conditions, including approval from GM.
Orion Resource Partners’ founder and Group CEO, Oskar Lewnowski, expressed excitement about the strategic investment in Lithium Americas to support the development of a domestic lithium supply chain to meet the growing demand across industries. This partnership highlights the importance of securing a local supply chain for critical minerals like lithium, which are essential for various industries such as electric vehicles and renewable energy. By investing in Thacker Pass, Orion is contributing to the development of a sustainable and reliable source of lithium in the United States.
The Thacker Pass project is crucial for increasing domestic production of lithium, which is a key component in the manufacturing of electric vehicle batteries. By securing investments and agreements for financing, Lithium Americas is on track to develop this important project and contribute to the growth of the electric vehicle industry in the United States. The development of a domestic lithium supply chain will help reduce reliance on foreign sources and support the transition towards cleaner and more sustainable energy sources.
The investment from Orion Resource Partners will enable Lithium Americas to move forward with the development and construction of Phase 1 of the Thacker Pass lithium project. This strategic partnership will provide the necessary funds to complete the project, ensuring that the company is fully funded for the construction period. With the support of Orion and other investors, Lithium Americas can progress towards meeting the growing demand for lithium and contribute to the development of a robust domestic lithium supply chain.
Overall, the strategic investment from Orion Resource Partners in Lithium Americas for the Thacker Pass lithium project signifies a significant step towards developing a domestic supply chain for critical minerals like lithium. By securing funding and agreements for Phase 1 and potentially Phase 2 of the project, Lithium Americas is well-positioned to contribute to the growth of the electric vehicle industry and the transition towards cleaner and more sustainable energy sources in the United States. With the support of investors like Orion, the company can meet the rising demand for lithium and help build a more resilient and self-sustaining supply chain for essential minerals.
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