08:48 AM EST, 12/23/2024 (MT Newswires) -- Lithium Americas ( LAC ) said Monday it closed its joint venture with General Motors ( GM ) to fund, develop, and operate the Thacker Pass lithium project in Humboldt County, Nevada.

The company said the project will supply battery-quality lithium carbonate for North America's critical minerals supply chain.

Under the joint venture, the company said it now holds a 62% interest in Thacker Pass and will manage the project, while GM has acquired a 38% stake for a total of $625 million, which includes $430 million in direct cash funding for phase 1 construction and a $195 million letter of credit facility.

The company said that as part of the closing, GM contributed $330 million in cash, while Lithium Americas ( LAC ) contributed $138 million.

It added that the remaining $100 million cash contribution from GM, and its $181 million contribution will be made at the final investment decision for phase 1.

Additionally, GM will post the letter of credit facility before the first draw of Lithium Americas' ( LAC ) $2.26 billion loan from the US Department of Energy, expected in mid-2025.

Shares of Lithium Americas ( LAC ) rose 3% in premarket activity.