Lithium Americas Soars After Securing $2.26B US Loan Deal
Department of Energy takes 5% equity stake in the company to bolster domestic lithium production for EV batteries.
Lithium Americas (LAC) shares surged more than 23% after the company finalized a landmark agreement with the U.S. government for a $2.26 billion loan to develop its Thacker Pass project in Nevada, the largest-known lithium resource in the United States.
The deal, announced through the Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, represents a major step in the Biden administration's efforts to build a secure domestic supply chain for critical minerals essential for electric vehicle (EV) batteries and clean energy technologies. As part of the arrangement, the U.S. government will acquire a 5% equity stake in Lithium Americas, underscoring the project's strategic national importance.
This federal backing significantly de-risks the massive project for investors and partners, including General Motors, which has a major offtake agreement for the mine's future output. The Thacker Pass project is positioned to become a cornerstone of American energy independence, aiming to produce up to 40,000 metric tons of battery-grade lithium carbonate annually. as a critical move to counter international dominance in the lithium market.
The financing package provides a clear path to production, which is expected to commence in 2028. According to the , the loan and government backing are pivotal for the construction and development of the Nevada mine. The investment addresses a significant vulnerability in the U.S. supply chain, as the country currently produces less than 1% of the world's lithium despite holding significant reserves.
For Lithium Americas, the loan provides the financial certainty needed to bring the ambitious project to completion. For the broader market, it signals a powerful federal commitment to onshoring the production of materials vital for the green energy transition and national security, a move that has been widely applauded by market analysts.