Lithium Americas has secured a $250 million strategic investment from Orion Resource Partners , a global critical metals and materials firm, to advance its Thacker Pass project in Nevada.
The phases of the Thacker Pass project
Orion has committed $195 million through the purchase of unsecured senior convertible notes and an additional $25 million through a Production Payment Agreement ( PPA ). In addition, the firm has indicated that it could inject an additional $30 million over a two-year period, completing the total investment amount of $250 million.
The notes will mature in 2030 with an initial conversion price of $3.78 per share, reflecting a 43% premium to Lithium Americas’ five-day weighted average value on the New York Stock Exchange. An annual interest rate of 9.875% until maturity was also agreed.
The investment will cover the remaining financial requirements of the U.S. Department of Energy and General Motors for the $2.26 billion federal loan, ensuring full financing of the project.
On the other hand, the company Orion has expressed interest in evaluating a future investment of up to $500 million for Phase 2 of the project, strengthening the security of the lithium supply chain in the American country, as one of its main management strategies.
Orion’s commitment to this project highlights the strategic importance of Thacker Pass to national security and the development of a domestic supply chain, as we work to reduce U.S. dependence on foreign suppliers for critical minerals.
Jonathan Evans, President and CEO of Lithium Americas.
Orion is excited to make this strategic investment in Lithium to support the development of a domestic lithium supply chain to meet growing demand across all industries.
Oskar Lewnowski, founder and CEO of Orion.
Phases of the Thacker Pass project. Source: Lithium Americas
Construction of Phase 1 has begun with Bechtel as prime contractor. The projected production capacity of the facility is 40,000 tons per year of battery-grade lithium carbonate, making a significant contribution to the electric vehicle and energy storage industry.
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Source and photo : Lithium Americas
