Shares in Lithium Americas (TSX: LAC; NYSE: LAC) jumped by 20.2% on Wednesday after it announced anew, US$625-million joint venture agreement with General Motors for its Thacker Pass project in northern Nevada.
Under the deal that the developer calls the largest ever by a U.S. original equipment manufacturer in a lithium project, GM is to acquire a 38% stake in Thacker Pass for US$625 million in cash and letters of credit. The JV deal replaces the US$330 million in second tranche equity investment from GM announced in January 2023, and is in addition to the US$2.3 billion loan from the U.S. Department of Energy (DOE).
The deal also includes US$430 million of direct funding to the JV to build the project’s first stage, expected to cost US$2.9 billion. “Our relationship with GM has been significantly strengthened with this joint venture as we continue to pursue a mutual goal to develop a robust domestic lithium supply chain by advancing the development of Thacker Pass,” Jonathan Evans, Lithium Americas president and CEO said in a release.
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