Lithium Americas Corp (TSE: LAC) (NYSE: LAC) closed a USD$250 million investment round from funding entities managed by Orion Resource Partners LP to help with the first phase of the Thacker Pass lithium project in Humboldt County, Nevada.
On Tuesday, the company, along with its joint venture partner, General Motors Corp (NYSE: GM), also announced the final investment decision for the first phase.
This investment fulfills all outstanding requirements set by both the U.S. Department of Energy (DOE) and GM, ensuring that Lithium Americas meets the equity capital fundraising obligations under the previously announced $2.26 billion DOE loan.
As part of the closing, Orion has invested in senior unsecured convertible notes with a total principal amount of USD$195 million. It has also paid Lithium Americas USD$25 million in exchange for a share of payments tied to minerals produced and gross revenue generated by Thacker Pass. Additionally, Orion has committed another USD$30 million in senior unsecured convertible notes through a delayed draw facility, contingent on meeting certain conditions.
With this investment, Lithium Americas has secured full funding for the development of Phase 1 of Thacker Pass at both the project and corporate levels throughout construction.
The JV partners have announced a final investment decision (FID) for Phase 1 construction, targeting completion by late 2027. At the time of the FID, GM contributed USD$100 million in cash to the JV, while Lithium Americas provided USD$192 million.
Read more: Calibre Mining beats updated gold production guidance with 242,487 ounces
Read more: Calibre Mining’s mineral resource estimate in Talavera gives reasons for optimism
Electric vehicle demand surge means dependency on foreign lithium
The United States faces a significant shortage of lithium and other critical minerals essential for the clean energy transition.
As demand for electric vehicles (EVs) surges, the country remains heavily dependent on foreign supply chains, particularly China.
This reliance poses a strategic vulnerability, as geopolitical tensions could disrupt access to these essential materials. Subsequently, it represents a significant threat to the U.S. EV industry and national energy security.
Thacker Pass, located in northern Nevada, represents the most promising domestic solution to this crisis. The lithium deposit is one of the largest in North America. Additionally, its development is critical to reducing U.S. dependence on foreign sources.
Once fully operational, Phase 1 of Thacker Pass is expected to produce 40,000 tonnes of lithium carbonate equivalent per year. This production could further provide a crucial domestic supply for battery manufacturers. Furthermore, this supports the Biden administration’s goals of securing domestic critical mineral supply chains.
China currently controls nearly 60 per cent of global lithium refining capacity.
The U.S. government has responded with policies such as the Inflation Reduction Act (IRA), which incentivizes domestic production and processing. However, President Donald Trump has been highly critical of the IRA, particularly its provisions related to climate change, clean energy, and electric vehicle (EV) incentives.
He has dismissed the legislation as wasteful government spending and a giveaway to special interests. His argument is it does little to reduce inflation and instead prioritizes “radical” green energy policies over American energy independence.
Read more: Calibre Mining prepares for special shareholder meeting for Equinox merger
Read more: Equinox Gold acquires Calibre Mining for $2.6B
Nevada brings multiple metal value beyond Thacker Pass
Nevada is one of the most resource-rich states in the U.S., offering a wealth of critical and precious metals, including gold, lithium, and copper. As the top gold-producing state, Nevada is home to major mining operations such as Nevada Gold Mines. This is a joint venture between Barrick Gold Corp (TSE: ABX) (NYSE: GOLD) and Newmont Corporation (TSE: NGT) (NYSE: NEM). Furthermore it’s operation is responsible for a significant portion of U.S. gold output, with mines like Carlin, Cortez, and Turquoise Ridge.
Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF) is another notable gold producer in Nevada. It operates the Pan Mine in White Pine County.
Acquired from Fiore Gold, Pan is a heap-leach operation with strong production potential. Calibre continues to expand its Nevada footprint, focusing on efficiency and exploration to extend the mine’s life.
Beyond gold and lithium, Nevada is also rich in copper.
Kinterra Capital’s affiliate, Southwest Critical Materials, acquired the Pumpkin Hollow Copper Project from Nevada Copper during bankruptcy proceedings.
This acquisition includes both the open-pit and underground mining operations associated with Pumpkin Hollow. With this acquisition, Kinterra now controls over 11 billion pounds of copper across its portfolio in the United States.
.
Calibre Mining is a sponsor of Mugglehead news coverage
.
