Lithium Americas Corp (TSX:LAC, NYSE:LAC) is apparently in discussions with the US Department of Energy (DOE) for a $1 billion loan to help develop the Canadian company’s 100% owned Thacker Pass project in Nevada, Bloomberg News reported on Friday, citing a person familiar with the matter.
The anonymous source said the Biden administration is negotiating terms that would fund more than half of the cost of Thacker Pass lithium project.
The media outlet noted that the mine, when built, has the potential to be North America's largest source of lithium for electric vehicle batteries and would bolster US President Joe Biden's efforts to reduce dependence on China for lithium supply.
In February, Lithium Americas announced that it had received a letter of substantial completion from the DOE regarding the company's application for funding.
As well, General Motors said previously it would invest $650 million in the mine project, giving the auto giant exclusive access to the first phase of production.
A 2022 feasibility study estimated an after-tax net present value (NPV) of US$5.7 billion and internal rate of return (IRR) of 21.4% for Thacker Pass, and a 16.1 million tonne Measured & Indicated lithium resource that could support production of up to one million electric vehicles (EVs) per annum over the 40-year project life, according to the company.
Shares of Lithium Americas fell 5% to C$21.90 in early Monday trading on the Toronto Stock Exchange.
Contact Sean at sean@proactiveinvestors.com