Lithium Americas Closes $2.26 Billion U.S. DOE ATVM Loan
(All amounts in US$ unless otherwise indicated)
HIGHLIGHTS
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The DOE Loan for
$2.26 billion will have interest rates fixed from the date of each monthly advance for the term of the loan at applicableU.S. Treasury rates. The DOE Loan amount includes funding of interest accrued during construction.
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The DOE Loan will help finance the construction of
Thacker Pass , targeted to produce an initial 40,000 tonnes per annum (“tpa”) of battery-quality lithium carbonate (“Phase 1”). The Company is targeting to make the final investment decision (“FID”) and issue full notice to proceed (“FNTP”) by the end of the year.
- Thacker Pass Phase 1 is expected to create approximately 1,800 direct jobs during its three-year construction period and approximately 360 full time jobs during operations for its 40-year mine life.
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Thacker Pass supports theU.S. government’s commitment to securing a domestic supply chain for critical minerals to reduce reliance on foreign materials.
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The DOE Loan will be supplemented by the investment agreement (“Investment Agreement”) announced on
October 16, 2024 withGeneral Motors Holdings LLC (“GM ”) to establish a joint venture (“JV”) for the purpose of funding, developing, constructing and operating (“JV Transaction”)Thacker Pass . Under the terms of the Investment Agreement,GM will acquire a 38% asset-level ownership stake inThacker Pass for$625 million in total cash and letters of credit, including a$195 million letter of credit facility (“LC Facility”) that can be used as collateral to support reserve account requirements under the DOE Loan.
“We’re pleased to have the Department of Energy’s support to advance
DOE ATVM LOAN DETAILS
The key terms and conditions of the DOE Loan are summarized below:
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The closing of the DOE Loan follows receipt of a Conditional Commitment in
The Company expects to make the first draw on the DOE Loan sometime in the middle of 2025. Conditions precedent to first draw include closing the GM JV Transaction, funding DOE Loan reserve accounts through the GM LC Facility, securing additional corporate working capital and project finance model bring down.
BACKGROUND
On
Initial construction commenced in early 2023 with site preparation for major construction completed. The Company is currently focused on advancing detailed engineering, procurement and execution planning ahead of making FID, expected by the end of the year, following closing of the GM JV Transaction.
TRANSACTION ADVISORS
In connection with the DOE Loan,
TECHNICAL INFORMATION
The scientific and technical information in this news release has been reviewed and approved by
ABOUT
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking information” (“FLI”)). All statements, other than statements of historical fact, are FLI and can be identified by the use of statements that include, but are not limited to, words, such as “anticipate,” “plan,” “continues,” “estimate,” “expect,” “may,” “will,” “projects,” “predict,” “proposes,” “potential,” “target,” “implement,” “scheduled,” “forecast,” “intend,” “would,” “could,” “might,” “should,” “believe” and similar terminology, or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved. FLI in this news release includes, but is not limited to, (i) the decision to make, and the targeted timing to make, an FID and FNTP; (ii) the completion of, as well as timing for completion of, the JV Transaction with
FLI involves known and unknown risks, assumptions and other factors that may cause actual results or performance to differ materially. FLI reflects the Company’s current views about future events, and while considered reasonable by the Company as of the date of this news release, are inherently subject to significant uncertainties and contingencies. Accordingly, there can be no certainty that they will accurately reflect actual results. Assumptions upon which such FLI is based include, without limitation, satisfaction of conditions to completion of the DOE Loan, including obtaining additional financing, amendments to accommodate the JV Transaction in the DOE Loan and other customary draw-down conditions; the ability of the Company to satisfy all closing conditions for the JV Transaction and the DOE Loan in a timely manner; expectations regarding the Company's financial resources and future prospects; the ability to meet future objectives and priorities; a cordial business relationship between the Company and third party strategic and contractual partners; general business and economic uncertainties and adverse market conditions; the absence of material adverse events affecting the Company during this time; the availability of equipment and facilities necessary to complete development and construction at the Project; unforeseen technological and engineering problems; political factors, including the impact of the 2024 U.S. presidential election on, among other things, the extractive resource industry, the green energy transition and the electric vehicle market; the being no adverse changes in laws or prevailing government policy in
Readers are cautioned that the foregoing lists of factors are not exhaustive. There can be no assurance that FLI will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. As such, readers are cautioned not to place undue reliance on this information, and that this information may not be appropriate for any other purpose, including investment purposes. The Company’s actual results could differ materially from those anticipated in any FLI as a result of the risk factors set out herein and in the Company’s filings with securities regulators.
The FLI contained in this news release is expressly qualified by these cautionary statements. All FLI in this news release speaks as of the date of this news release. The Company does not undertake any obligation to update or revise any FLI, whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Company’s filings with securities regulators, including the Company’s most recent Annual Report on Form 20-F and most recent management’s discussion and analysis for our most recently completed financial year and, if applicable, interim financial period, which are available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. All FLI contained in this news release is expressly qualified by the risk factors set out in the aforementioned documents.
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1 Based on assumed 5.2% interest rate.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028566951/en/
INVESTOR CONTACT
+1-778-726-4070
ir@lithiumamericas.com
www.lithiumamericas.com
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