FX.co ★ Lithium Americas, General Motors Holdings To Establish New JV

Lithium Americas Corp. (LAC.TO, LAC) has announced a new investment partnership with General Motors Holdings LLC, aimed at creating a joint venture to fund, develop, construct, and manage the Thacker Pass project in Humboldt County, Nevada.

This joint venture will bring $625 million in cash and letters of credit from GM to Thacker Pass, in addition to the previously announced conditional commitment for a $2.3 billion loan from the U.S. Department of Energy.

According to the Investment Agreement, GM will secure a 38% asset-level ownership stake in Thacker Pass by investing $625 million in total cash and letters of credit. This includes $430 million in direct cash funding to the joint venture for Phase 11 construction and a $195 million letter of credit facility, which can serve as collateral for reserve account requirements linked to the DOE loan.

This transaction supersedes the $330 million Tranche 2 common equity investment commitment from GM, which was outlined in the initial investment agreement announced in January 2023.