Mentioned:
One of the largest lithium resources in the United States of America is about to receive a major influx of funding from the Department of Energy.
What’s happening:
- Lithium Americas (NYSE: LAC) and General Motors (NYSE: GM) have reached an agreement with the United States Department of Energy for an initial funding tranche of $425M USD for advancing the Thacker Pass lithium project located in Nevada
Why it matters:
- The United States Department of Energy just recently made major waves when they struck a deal to receive a 5% equity stake in Lithium Americas and a separate 5% stake directly in their Thacker Pass project as part of their commitment to provide a $2.26B USD loan to Lithium Americas
Going deeper:
- General Motors previously secured the rights to purchase all of the lithium produced at the Thacker Pass project from Phase 1 of operations as well as direct ownership in the project through their strategic investment of more than half a billion dollars into Lithium Americas
- Lithium Americas also previously landed a $250M USD investment from Orion Resource Partners for advancing Thacker Pass, which is one of the largest critical minerals and natural resource funds in the entire world
The intrigue:
- This is the first time in history that the United States government has taken an equity stake in a publicly traded lithium company
