Lithium Americas announced on Thursday a $250-million investment from Orion Resource Partners, a private equity firm focused on metals and materials, to fund the development of the first phase of its Thacker Pass lithium project in Nevada. The funding is expected to provide full financial backing for the construction phase, with production targeted to begin in late 2027.

Under the agreement, Orion will acquire $195-million in senior unsecured convertible notes and enter into a production payment agreement (PPA) with Lithium Americas, contributing an additional $25-million. The firm has also committed to purchasing another $30-million in notes within two years, bringing its total investment to $250-million. Lithium Americas said the investment would allow it to finalise the financial requirements for its $2.26-billion loan from the US Department of Energy (DoE), secured in partnership with General Motors.

“Orion’s long-term investing horizon and experience with resource development makes them an excellent partner for Lithium Americas and Thacker Pass and contributes to our strong relationships with General Motors and the US DoE,” said Lithium Americas president and CEO Jonathan Evans. “Orion’s commitment to this project highlights the strategic importance of Thacker Pass to national security and developing a domestic supply chain, as we work to reduce American dependence on foreign suppliers for critical minerals.”

Thacker Pass, one of the largest lithium reserves in the US, has become a key project in the effort to establish a domestic battery supply chain. The DoE loan, along with previous investments from General Motors, is aimed at reducing reliance on foreign lithium sources.

FINANCING DETAILS

Orion’s $195-million in convertible notes will mature in 2030 and bear an interest rate of 9.875% a year. The notes carry an initial conversion price of $3.78 a share, a 43% premium to Lithium Americas’ five-day volume-weighted average price on the NYSE as of March 5.

Under the PPA, Orion will receive fixed payments of $128/t of lithium processed, increasing to $152/t if the additional $30-million in notes is drawn. Orion will also receive variable payments amounting to 0.96% of gross revenue from the project, or 1.14% if the full investment is utilized. These payments apply only to the first 41 500 t/y of lithium processed and are subject to adjustments based on total project costs and lithium market prices.

“Orion is excited to make this strategic investment in Lithium Americas to support the development of a domestic lithium supply chain to meet the rising demand across industries,” said Oskar Lewnowski, Orion’s founder and group CEO.

The investment marks a significant step toward Lithium Americas’ final investment decision for Thacker Pass Phase 1, which remains contingent on approvals from General Motors and other stakeholders. The company expects the investment to close the week of March 10, pending regulatory approvals.

Lithium Americas said it had already given full notice to proceed to Bechtel, the project’s engineering, procurement, and construction management contractor, as well as other major contractors. Construction is on track to begin this year, with completion of the first phase scheduled for late 2027.

Beyond the current investment, Orion has agreed on a non-binding basis to evaluate up to $500-million in additional financing for the second phase of Thacker Pass, though no formal commitment has been made. 

“Thacker Pass is a world-class project, and we are committed to providing investment solutions for metals and materials critical to sustainable economic growth and the energy transition,” said Orion managing partner Istvan Zolle.