Lithium Americas Corp. has announced the receipt of an initial $435 million disbursement from its $2.23 billion Department of Energy (DOE) Advanced Technology Vehicles Manufacturing (ATVM) loan. This funding is designated for the construction of processing facilities at Nevada’s Thacker Pass, as said in a press release.
The initial disbursement is intended to advance U.S.-based processing at Thacker Pass, a project that supporters frame as a cornerstone for resilient, American-controlled electric vehicle (EV) supply chains. Lithium Americas Corp. reports active construction, an expanding skilled workforce in Winnemucca housing, and a joint venture structure with General Motors to anchor offtake. These elements align with policy aims to localize value-add steps, secure domestic inputs, and reduce exposure to geopolitical leverage. Proponents emphasize that disciplined federal lending can catalyze private capital at lower costs and speed up timelines.
According to Lithium Americas Corp., the DOE loan totals $2.23 billion, comprising $1.97 billion in principal plus an estimated $256 million of capitalized interest during construction. Amounts drawn accrue interest at the applicable long-dated U.S. Treasury rate with a 0% spread, and the tenor is approximately 23 years from the first draw. Scheduled principal and interest payments are set to begin in January 2029. The facility permits monthly draws subject to customary conditions and includes no financial model bringdown for subsequent advances; it can be prepaid at any time by paying principal plus accrued interest, subject to conditions.
Strategically, shifting key steps to U.S. soil is billed as reducing dependence on China-centered battery supply chains. The International Energy Agency (IEA) reports that China holds nearly 85% of global battery cell production capacity and outsized shares of cathode/anode materials, while the U.S. Energy Information Administration (EIA) shows China accounted for 58% of interregional exports of battery materials, packs, and components in 2023. Domestic lithium carbonate output and processing in Nevada are positioned by advocates to cut exposure to export controls, tariffs, and sudden policy shifts—advancing American industrial autonomy in EVs and grid storage.
Lithium Americas focuses on responsibly developing Thacker Pass in northern Nevada, which it describes as hosting the world’s largest known measured lithium resource and reserve. The company states its purpose is to safely and sustainably produce lithium from Thacker Pass to help North America reduce dependence on foreign critical minerals, guided by values showing integrity, safety, community stewardship, innovation, collaboration, and a vision to be North America’s leading lithium producer.
