US to Take Stake in Lithium Americas to Boost Nevada Project

Core Insights - The US government has agreed to acquire a 5% equity stake in Lithium Americas Corp. and a 5% stake in its Thacker Pass mining project, which is the largest lithium deposit in the country [2][4] - The agreement includes a $2.23 billion loan from the Department of Energy, with Lithium Americas set to draw $435 million of this loan [2][5] - The initiative aims to bolster domestic lithium production to reduce reliance on imports, particularly from China, and is part of a broader strategy to develop a domestic supply chain for critical metals [3][4] Company Developments - Lithium Americas is developing the Thacker Pass project in partnership with General Motors Co., which is expected to become a significant source of lithium for the domestic industry [4] - The project is projected to produce approximately 40,000 metric tons per year of battery-grade lithium carbonate once fully operational [6][7] - US-listed shares of Lithium Americas surged by as much as 43% in premarket trading following the announcement [4] Financial Aspects - The loan from the Department of Energy was slightly reduced from $2.26 billion to $2.23 billion, with $182 million of debt service deferred over the first five years [5] - The funding will support the construction of a lithium carbonate processing plant adjacent to the Thacker Pass mine, which has a total estimated investment of $2.2 billion [6]