The U.S. administration is seeking an equity stake of up to 10% in Lithium Americas as it works to renegotiate the terms of a $2.26 billion loan from the Department of Energy’s loan office for the Thacker Pass lithium project. Discussions involve the company and General Motors, which holds a 38% interest in the mine.
When operational in 2028, Thacker Pass is expected to become the largest lithium source in the Western Hemisphere, producing battery-grade lithium carbonate sufficient for roughly 800,000 electric vehicles annually during its first phase. Construction has been underway for nearly a year, with more than 600 contractors working at the site near the Nevada–Oregon border. The project has been a focal point of U.S. efforts to develop a domestic supply chain for lithium, a critical metal for electric vehicles and energy storage.
The loan, approved by the former administration and closed under current DOE leadership, spans 24 years with interest rates tied to U.S. Treasury yields. The first draw on the financing was originally planned for early September, but officials raised concerns about Lithium Americas’ ability to meet repayment obligations amid low lithium prices influenced by global production trends.
As part of the proposed restructuring, Lithium Americas offered no-cost warrants equivalent to 5%–10% of its common shares and agreed to cover any fees associated with modifying the loan’s amortization schedule. The administration is also seeking assurances that General Motors will commit to purchasing the lithium output designated for its offtake rights over two decades.
General Motors, which invested $625 million in the project last year, described the loan as essential for commercializing this domestic resource and reiterated confidence in Thacker Pass. Lithium Americas said it respects the DOE’s decision to pursue a loan restructure and remains in active discussions with both the Energy Department and its partner.
To protect taxpayer interests, original loan agreements include clauses allowing the government to assume control of the project in case of significant delays or cost overruns. Lithium Americas is among several companies advancing U.S. lithium development to reduce reliance on overseas processing.
Source: Reuters
