Lithium Americas Finalizes Financing US Lithium Project With GM, Orion Resource Partners

Junior miner Lithium Americas Corp LAC announced a final investment decision for the first phase of its flagship Thacker Pass lithium mine in Nevada. The project, structured as a joint venture with General Motors, should be operational by late 2027.

“Together, we will develop a U.S.-produced lithium supply chain to reduce American dependence on foreign suppliers for critical minerals,” said Lithium Americas CEO Jonathan Evans.

The company funded $192 million, while General Motors added $100 million for the project, which is seen as a key element in reducing dependence on foreign lithium sources. Additionally, the project received a $250 million investment from Orion Resource Partners, which includes $195 million in convertible notes and an additional $30 million available through a delayed draw facility.

Yet, these numbers fade compared to a $2.26 billion loan Lithium Americas secured from the U.S. Department of Energy through its Advanced Technology Vehicles Manufacturing Loan Program.

Located in Humboldt County, Nevada, Thacker Pass contains one of the largest known lithium resources in the world, with an estimated 14.3 million tons of lithium carbonate equivalent in proven and probable reserves.

In its first phase, the mine is expected to produce 40,000 metric tons of battery-quality lithium carbonate annually — enough to supply materials for approximately 800,000 electric vehicles. The project was the last major development approved under President Donald Trump‘s first administration.

The U.S. domestic lithium demand might grow to 500,000 metric tons of lithium carbonate by 2030, while Statista sees the global supply exceeding 2 million metric tons by the same time. Yet, lithium prices have been volatile in recent months, as a temporary slowdown in demand and an increase in supply pressured the market. Prices fell below $10,000 per metric ton, returning to levels not seen since 2021.

Still, despite a market dynamic that reflects a typical bursting bubble, major commodity producers continue to expand operations, recognizing that long-term demand for lithium will rise as electric vehicle adoption and renewable energy storage needs grow.

Global mining powerhouse Rio Tinto remains pursuing a major project in Serbia, while discussing a similar hard rock lithium project in the Democratic Republic of Congo, which also attracted interest from a billionaire-backed startup KoBold Metals.

Even oil companies are exploring lithium mining, owing to synergies provided by the direct lithium extraction method. Industry leader ExxonMobil is currently testing production in Arkansas and has signed a non-binding supply deal with the battery producer LG Chem.

LAC Price Watch: Lithium Americas stock is up 1.09% at $2.79 on Wednesday. The stock is down 6.06% year-to-date.

Read Next:
• Critical Metals Corp Announces Multi-Billion Assessment For Its Greenland Project

Photo: Shutterstock