Published: March 22, 2024 | Share This

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Lithium Americas has received a conditional commitment from the U.S. Department of Energy for a $2.26 billion loan under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program for financing the construction of the processing facilities at Thacker Pass Mine, located in Humboldt County, Nevada.

“The United States has an incredible opportunity to lead the next chapter of global electrification in a way that both strengthens our battery supply chains and ensures that the economic benefits are directed toward American workers, companies, and communities,” said Jonathan Evans, president and chief executive officer of Lithium Americas.

“The ATVM loan conditional commitment by the DOE is a significant milestone for Thacker Pass, which will help meet the growing domestic need for lithium chemicals and strengthen our nation’s security,” added Evans.

“We are pleased to have completed the rigorous DOE due diligence process. The loan plus GM’s strategic investment will provide the vast majority of the capital necessary to fund phase 1. We deeply appreciate the U.S. government’s support as we advance the responsible development of Thacker Pass, and we are excited to continue collaborating with all of our stakeholders to bring shared success for America,” concluded Evans.

Thacker Pass is currently the largest known measured and indicated lithium resource in North America, targeting total production capacity of 80,000 tpa of battery-quality lithium carbonate to be developed in two phases of 40,000 tpa, respectively. Phase 1 production is anticipated to commence in 2027. Material sourced from Thacker Pass will support EV eligibility for consumer incentives under the U.S. clean energy tax credits program.

In January 2023, General Motors Holdings agreed to invest $650 million in Lithium Americas across two tranches for the development of Thacker Pass, representing the largest investment publicly disclosed to date by an automaker in a company to produce battery raw materials. GM has exclusive offtake to 100 percent of the lithium production from phase 1 for up to 15 years and has a right of first offer on phase 2 production.

The company and Bechtel entered into a PLA with NABTU for construction of Thacker Pass to minimize construction risk, provide skilled labor, and prioritize the employment of local and regional skilled craft workers, including members of underrepresented communities.

The company has been closely engaged with the nearby Fort McDermitt Paiute Shoshone Tribe since 2018 and entered into a binding community benefits agreement (CBA) in 2022. The CBA provides infrastructure improvements at Fort McDermitt, additional job training and employment opportunities for tribal members, and support for cultural education and preservation. The company is committed to hiring from the regional area in Humboldt County wherever possible, including among tribal members and communities identified by DOE as disadvantaged communities.

“Thacker Pass will provide important economic and employment opportunities for members of our tribe,” said Larina Bell, acting chairwoman of the Fort McDermitt Paiute Shoshone Tribe.

“Through our meetings with Lithium Americas, we have recognized their goal of securing a domestic supply of the lithium mineral, a key component of batteries that are essential in the transition to renewable energy and to build sustainable resiliency against climate change. Lithium Americas has acknowledged the tribe’s interests and agreed to go forward with its project with the understanding that the removal of this material must include stewardship and mitigation of potential impacts to natural resources,” Bell said citing a letter from her predecessor written in October 2022.

The company is committed to sustainable development and minimizing our environmental impact. Thacker Pass has been designed to avoid sensitive habitat and will employ advanced environmental control technologies to be a low carbon and low water footprint operation. Leveraging filtration, evaporation, and centrifuge technologies will help maximize the reuse and recycling of processed water and limit the amount of water obtained from natural sources, as well as enable Thacker Pass to be a zero liquid discharge facility that does not discharge industrial wastewater into the environment. Phased reclamation will begin during operations and filter stacked neutralized tailings will support reclamation plans to promote stability and restore native vegetation.

Over the past year, the DOE undertook a robust due diligence process to review all key aspects of the project and complete term sheet details. While this conditional commitment represents a significant milestone and demonstrates the DOE’s intent to finance the project, certain technical, legal and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan.

Lithium Americas is currently focused on advancing detailed engineering, procurement, and execution planning for the construction of Thacker Pass. Initial construction commenced in early 2023 and major construction is expected to commence in the second half of 2024, following the anticipated closing of the loan.

Lithium Americas is focused on advancing lithium projects in Argentina and the United States to production. In Argentina, Caucharí-Olaroz is advancing towards first production and Pastos Grandes represents regional growth. In the U.S., Thacker Pass has received its record of decision and has commenced construction.

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