Lithium Americas (LAC) Gains Momentum With Multi-Billion Dollar Loan Commitment

Lithium Americas Corp. (NYSE: LAC) shares are up 13.17% so far today, to $6.48. The rise in LAC stock value coincides with the announcement of a significant multi-billion dollar loan acquisition.

Lithium Americas (LAC) has received a conditional loan commitment from the U.S. Department of Energy (“DOE”) under the Advanced Technology Vehicles Manufacturing (“ATVM”) Loan Program. The purpose of this funding support is to build processing facilities in Nevada’s Humboldt County.

The loan encompasses accrued interest over the envisaged three-year construction period, estimated at $290 million. It entails fixed interest rates pegged to prevailing U.S. Treasury rates. The primary aim of the financing is to accelerate the advancement of Thacker Pass Phase 1, with the objective of annually producing 40,000 tons of battery-grade lithium carbonate (“tpa”).

During the construction phase, Thacker Pass Phase 1 is expected to engender roughly 1,800 direct employment opportunities and sustain approximately 360 operational positions over its envisaged 40-year mine lifespan. An economic impact assessment conducted by the University of Nevada, Reno suggests that each direct job generated by Lithium Americas’ investment could lead to an additional 1.5 local job opportunities.

Lithium Americas, alongside its engineering, procurement, and construction management (“EPCM”) collaborator Bechtel, has entered into a National Construction Agreement (“PLA”) with North America’s Building Trades Unions (“NABTU”) to oversee construction activities at Thacker Pass. This development aligns with the U.S. government’s objective of establishing a domestic supply chain for critical minerals, reducing reliance on foreign resources.

Phase 1 production at Thacker Pass could potentially meet the lithium demand for up to 800,000 electric vehicles (“EVs”) annually. The situation presents an unparalleled opportunity for the United States to lead the global electrification drive, strengthening LAC’s battery supply chains while ensuring economic benefits are directed toward American workers, enterprises, and communities.

The DOE’s conditional commitment for the ATVM loan marks a significant milestone for Thacker Pass, addressing the rising domestic demand for lithium chemicals and enhancing national security.