Lithium Americas has officially accessed the first tranche of its historic $2.23 billion guaranteed loan from the U.S. Department of Energy.
Lithium Americas Corp. marked a critical milestone in the development of its Thacker Pass Project, announcing the receipt of its initial drawdown of $435 million from the U.S. Department of Energy’s (DOE) $2.23 billion guaranteed loan. This substantial funding, secured through the DOE’s Loan Programs Office (LPO) under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, is specifically dedicated to financing the construction of the key processing facilities at the Nevada site.
The Thacker Pass Project, located in Humboldt County, Nevada, is strategically important, boasting the largest known measured lithium resource and reserve globally. The successful drawdown of the loan accelerates the project’s transition from development to full-scale construction, positioning it as a cornerstone in the establishment of a secure, domestic lithium supply chain for electric vehicles (EVs).
The total $2.23 billion DOE Loan package includes $1.97 billion in principal and an estimated $256 million allocated for capitalized interest during the construction period. The terms of the loan are highly favorable and reflect the federal government’s strategic priority to localize critical mineral processing.
Amounts drawn under the loan carry an interest rate equivalent to the applicable long-dated U.S. Treasury rate on the draw date, but with a highly attractive 0% spread. This favorable rate significantly reduces the long-term borrowing cost for the project. The loan tenor extends approximately 23 years from the date of the first draw, providing ample time for the project to reach full commercial production before repayment obligations begin. Scheduled repayments of principal and interest are slated to commence in January 2029.
The company has the flexibility to access the remaining loan amounts as frequently as monthly, contingent upon meeting customary construction loan conditions. Crucially, the DOE Loan documentation specifies no financial model bringdown requirements for subsequent draws. Lithium Americas also retains the option to prepay the loan at any time.
Thacker Pass is a joint venture between Lithium Americas, which holds a 62% interest and acts as the project manager, and General Motors Holdings LLC, holding the remaining 38%. The current focus is advancing Phase 1 toward production, which targets a nominal design capacity of 40,000 tonnes per year (tpy) of battery-quality lithium carbonate. This output is estimated to support the production of batteries for up to 800,000 electric vehicles annually.
