VANCOUVER, British Columbia, March 06, 2025 –Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) announced a strategic investment of $250 million from fund entities managed by Orion Resource Partners LP (collectively, “Orion”), a leading global investment firm dedicated to metals and materials, which is expected to achieve fully funded status at the project and corporate level for the development and construction of Phase 11 of the Thacker Pass lithium project in Humboldt County, Nevada (“Thacker Pass” or the “Project”) for the duration of construction. Completion of Thacker Pass Phase 1 is targeted for late 2027.
Orion has committed to purchase senior unsecured convertible notes in the aggregate principal amount of $195 million (the “Notes”) and enter into a Production Payment Agreement (“PPA”) whereby Orion will pay Lithium Americas $25 million in exchange for payments corresponding to the minerals processed and gross revenue generated by Thacker Pass (together, the Notes and PPA represent an aggregate initial investment of $220 million). Orion has committed, subject to the satisfaction of certain conditions precedent, to purchase an additional $30 million in aggregate principal amount Notes within two years (the “Delayed Draw Notes”) upon request by the Company. Together, the Notes, PPA and Delayed Draw Notes represent an aggregate $250 million investment for the development and construction of Phase 1 of Thacker Pass. The investment is expected to close the week of March 10, 2025, subject to the satisfaction of certain closing conditions. The investment establishes a long-term partnership with a premier resource investment firm with extensive experience in landmark projects. In addition, Orion has agreed, on a non-binding basis, to evaluate the potential to support up to $500 million of financing for the construction and development of Phase 22 of Thacker Pass.
“Orion’s long-term investing horizon and experience with resource development makes them an excellent partner for Lithium Americas and Thacker Pass and contributes to our strong relationships with General Motors and the U.S. Department of Energy,” said Jonathan Evans, Lithium Americas’ President and CEO. “Orion’s commitment to this Project highlights the strategic importance of Thacker Pass to national security and developing a domestic supply chain, as we work to reduce American dependence on foreign suppliers for critical minerals.”
Oskar Lewnowski, Orion’s Founder and Group CEO added, “Orion is excited to make this strategic investment in Lithium Americas to support the development of a domestic lithium supply chain to meet the rising demand across industries.”
Istvan Zollei, Managing Partner of Orion added, “Thacker Pass is a world-class project, and we are committed to providing investment solutions for metals and materials critical to sustainable economic growth and the energy transition.”
The Company expects that the initial $220 million investment will satisfy all remaining requirements from both the U.S. Department of Energy (“DOE”) and General Motors Holdings LLC (“GM”) to satisfy all remaining equity capital fundraising requirements under the previously announced $2.26 billion loan from the DOE (the “DOE Loan”). The investment positions the Company to be fully funded at both the project and corporate level for the duration of construction and provides Lithium Americas with meaningful liquidity post-final investment decision (“FID”) to manage its corporate overhead costs and other expenses during construction. First draw on the DOE Loan is expected to occur sometime in the third quarter of 2025.
Lithium Americas expects that the strategic investment from Orion will enable it to make an affirmative FID of the Thacker Pass joint venture (“JV”) for Phase 1 of Thacker Pass concurrently with the closing of the initial $220 million investment. The FID decision remains subject to certain conditions precedent, including the approval of GM (together with Lithium Americas, the “JV Partners”).
In the fourth quarter of 2024, the Company issued Bechtel, the Thacker Pass engineering procurement and construction management (“EPCM”) contractor, and other major contractors full notice to proceed (“FNTP”) to de-risk the project schedule. Completion of Thacker Pass Phase 1 is targeted for late 2027.