The Financial Comet
  • Business
  • World News
  • Politics
  • Investing
  • Business
  • World News
  • Politics
  • Investing

The Financial Comet

Investing

Lithium Americas and GM Advance Thacker Pass with Landmark Federal Funding

by admin October 2, 2025
October 2, 2025
Lithium Americas and GM Advance Thacker Pass with Landmark Federal Funding

Lithium Americas (TSX:LAC,NYSE:LAC) has reached an agreement with General Motors (NYSE:GM) and the US Department of Energy (DOE) to unlock the first $435 million installment of a landmark federal loan for its Thacker Pass lithium project in Nevada.

The company confirmed on Wednesday ( October 1) that the DOE will receive warrants giving it a 5 percent equity interest in Lithium Americas and a parallel 5 percent economic interest in the Thacker Pass joint venture with GM.

The arrangement is part of the terms for advancing the first tranche of a US$2.23 billion federal loan approved in 2024 to finance construction of the project, which is set to be the largest source of lithium in the western hemisphere.

The DOE also agreed to defer US$182 million of debt service over the first five years of the loan, while Lithium Americas will post an additional US$120 million into reserve accounts within a year of the funds being drawn.

Located about 25 miles south of the Oregon border, Thacker Pass has been cast as central to Washington’s push to cut reliance on Chinese-controlled processing and narrow the gap with global lithium producers in Australia and Chile.

Phase 1 of the project is designed to produce 40,000 metric tons of battery-grade lithium carbonate annually—enough to support roughly 800,000 electric vehicles.

At present, US domestic lithium output is negligible, limited to Albemarle’s (NYSE:ALB) Silver Peak operation in Nevada, which produces fewer than 5,000 metric tons a year.

By comparison, China processes more than three-quarters of the world’s raw lithium into battery-grade material.

Washington’s share finalized

The DOE stake comes after weeks of speculation over the size of Washington’s equity interest.

According to sources in late September, Trump officials had pressed for up to 10 percent, with Lithium Americas countering by offering no-cost warrants for 5 to 10 percent of its shares. The final agreement settled at the low end of that range.

The warrants issued to DOE will allow the department to appoint an observer to the joint venture’s board meetings for as long as it retains its economic stake.

If exercised in full, the ownership structure of the Thacker Pass joint venture will be 59 percent Lithium Americas, 36 percent GM, and 5 percent DOE.

Voting control, however, will remain split 62 percent to Lithium Americas and 38 percent to GM.

“We greatly appreciate the support of the Administration, General Motors and our partners in advancing this vital world-class project,” said Jonathan Evans, president and CEO of Lithium Americas.

“Together, we are onshoring large-scale US lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity”

For Washington, the agreement marks the latest in a series of moves by the Trump administration to take minority positions in companies deemed critical to US industrial and national security interests.

US Energy Secretary Chris Wright said in a statement that the Thacker Pass deal “helps reduce the country’s dependence on foreign adversaries for critical minerals by strengthening domestic supply chains.”

Shares of Lithium Americas surged more than 30 percent in pre-market trading Wednesday following the announcement, extending a rally that began last month when reports of a potential federal equity stake first surfaced.

The stock had spiked more than 90 percent in late September after Reuters reported the Trump administration’s push for ownership, jumping from about US$3 to over US$6.

Construction at Thacker Pass is already underway, with more than 600 contractors on site. The mine and processing plant are expected to reach full commercial output in 2028.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Gold Price Closes in on US$3,900 as US Government Shuts Down
next post
War Department pushes back on ‘false’ narrative of internal strategy split

Related Posts

John Feneck: Gold, Silver, Platinum, Copper — 8...

July 22, 2025

John Feneck: Gold Landscape Never Better, Plus 9...

March 13, 2025

Quimbaya Identifies Mineralized High-Sulfidation Porphyry System at Surface...

October 3, 2025

Broad gold intercepts in Sandstone drilling

June 24, 2025

Tech 5: CoreWeave IPO Falls Short, OpenAI Close...

March 30, 2025

CG1O: Security Class Suspension from Quotation

September 11, 2025

Joe Cavatoni: Gold’s Key Driver Now, Catalyst for...

July 24, 2025

Harvest Gold: Advancing the Large-scale Mousseau Gold Project...

June 20, 2025

Syntheia Announces First 1,000 Subscriptions

February 15, 2025

Crypto Market Recap: Coinbase Acquires Liquifi, Tether to...

July 3, 2025

    Join our mailing list to get access to special deals, promotions, and insider information. Your exclusive benefits await! Enjoy personalized recommendations, first dibs on sales, and members-only content that makes you feel like a true VIP. Sign up now and start saving!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Editors’ Picks

    • 1

      Trump re-designates Iranian-backed Houthis as terrorists: ‘Threaten[s] security of American civilians’

      January 23, 2025
    • 2

      DeepSeek hit with large-scale cyberattack, says it’s limiting registrations

      January 28, 2025
    • 3

      Universal’s ‘Wicked: For Good’ creates a unique marketing challenge

      January 27, 2025
    • 4

      UnitedHealthcare taps company veteran Tim Noel as new CEO following Brian Thompson killing

      January 27, 2025
    • 5

      Bank of America CEO says financial industry will jump into crypto payments if regulators allow it

      January 23, 2025
    • 6

      FDA officially authorizes Zyn nicotine pouches for sale following health review

      January 23, 2025
    • 7

      Lara Trump to host weekend show on Fox News

      February 7, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: thefinancialcomet.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 thefinancialcomet.com | All Rights Reserved