06:41 AM EDT, 03/14/2024 (MT Newswires) -- Lithium Americas Corp. ( LAC ) said Thursday that it received a conditional commitment for a US$2.26 billion loan from the US Energy Department to advance the Thacker Pass lithium project in Nevada.

The company surged 11.3% at last look in US pre-market trading following the news.

Lithium Americas ( LAC ) said the loan will have fixed interest rates from the date of each monthly advance, while noting that it includes interest of about US$290 million over the three-year period.

Thacker Pass will have a total production capacity of 80,000 tonnes per annum to be developed in two phases. Mechanical completion of the first phase is targeted for 2027. Major construction is expected to start in the second half of 2024.

The project is expected to create 1,800 direct jobs during the three-year construction period and about 360 jobs during its 40-year mine life.

"The US has an incredible opportunity to lead the next chapter of global electrification in a way that both strengthens our battery supply chains and ensures that the economic benefits are directed toward American workers, companies and communities," President and CEO Jonathan Evans said.

Separately, Lithium Americas ( LAC ) said site preparation for major earthworks at the project has been completed, and it is now focused on advancing detailed engineering, procurement and execution planning.