U.S. Department of Energy (DOE) Secretary Chris Wright announced the Loan Programs Office has restructured its deal with Lithium Americas with support from General Motors.
The new terms provide the government with 5% equity ownership in the form of Lithium Americas warrants as well as an additional 5% ownership in the form of warrants in the Lithium Americas/GM joint venture.
The Loan Programs Office utilizes warrants as part of the overall collateral package on a loan, helping to reduce repayment risk for taxpayers. The DOE was able to work with both parties to ensure greater loan resilience. The revised agreement includes robust loan amendments as well as more than $100 million of new equity.
“Despite having some of the largest deposits, the United States produces less than 1% percent of the global supply of lithium. Thanks to President Trump’s bold leadership, American lithium production is going to skyrocket,” U.S. Energy Secretary Chris Wright said.
“Today’s announcement helps reduce our dependence on foreign adversaries for critical minerals by strengthening domestic supply chains and ensures better stewardship of American taxpayer dollars. President Trump promised to do both and he is delivering.”
The new terms of the deal will help finance the construction of facilities for manufacturing lithium carbonate at Thacker Pass. Once fully operational, the facility is expected to produce approximately 40,000 tonnes per year of battery-grade lithium carbonate.
Source: Department of Energy