Lithium Americas Unlocks $435 Million in DOE Loan, Cements GM Partnership, and Strengthens U.S. Lithium Supply Chain

DOE Agreement Paves the Way for Major Thacker Pass Funding

Early this morning, Lithium Americas Corp. (NYSE: LAC, TSX: LAC) announced a breakthrough in its quest to become a leading supplier of U.S.-produced lithium. The company reached a non-binding agreement in principle with General Motors (GM) and the U.S. Department of Energy (DOE) to secure the first $435 million draw from its previously announced $2.26 billion DOE loan for the Thacker Pass project—America’s largest known lithium reserve.

The deal’s unique structure defers $182 million of debt service for the first five years, allowing more breathing room as the Thacker Pass site ramps up operations. Additionally, the DOE will receive a 5% equity stake in Lithium Americas via warrants, and a 5% economic interest in the Thacker Pass joint venture. These moves not only infuse the project with capital, but also solidify governmental and GM backing for a critical U.S. supply chain effort.

Equity and Economic Stakes: Government Support Deepens

One notable aspect of the agreement is how the DOE is embedding itself directly into Lithium Americas’ future. Through $0.01 warrants, the DOE secures both company and joint venture equity, while also claiming a board observer seat at the JV level. This institutional involvement elevates oversight and strengthens ties between public and private stakeholders at a pivotal time for domestic battery material development.

GM Amends Offtake Rights: More Flexibility and Supply Security

GM continues to play a foundational role by amending its lithium offtake agreement. Now, the joint venture can enter additional third-party contracts for production volumes not already forecasted for GM. The automaker retains up to 100% of Phase 1 and 38% of overall Thacker Pass lithium output for the first 20 years, securing long-term material supply while giving Lithium Americas the ability to diversify revenue sources. This step improves market access for Thacker Pass output as global demand for battery materials grows.

Financial Details and Project Impact: Supporting Domestic Battery Supply

With a lower projected construction interest rate (now 5.0%), the total DOE loan amount was reduced slightly to $2.23 billion. The principal stands at $1.97 billion, while estimated capitalized interest during construction is $256 million. Importantly, the DOE loan bears zero spread over the Treasury rate and will run for approximately 24 years from the date of first draw—now expected in Q4 2025. Lithium Americas will post an extra $120 million into DOE reserve accounts within a year after the initial draw.

The Thacker Pass project, jointly developed with Bechtel and in partnership with North America's Building Trades Unions, targets an annual output of 40,000 tonnes of battery-quality lithium carbonate and promises to create around 2,000 direct jobs during construction—supporting both U.S. energy ambitions and employment growth in Nevada.

Long-Term Implications: U.S. Lithium Independence and Industry Catalysts

This agreement marks a major stride in U.S. efforts to secure domestic lithium production and reduce reliance on imports for the booming battery supply chain. With deep support from both government and industry heavyweights like GM, Lithium Americas is poised to advance Thacker Pass from concept to reality—benefitting energy security, local job markets, and the next wave of electrification in automotive and beyond.

While details remain subject to further negotiation, the stakes—and the opportunities—have never been higher for those watching the future of battery minerals in the U.S. As these agreements move closer to finalization, all eyes will be on Lithium Americas’ ability to execute on schedule and shape a pivotal industry shift.

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