11:13 AM EST, 12/23/2024 (MT Newswires) -- Lithium Americas ( LAC ) said Monday that it closed a US$625 million investment agreement with General Motors Holdings over the Thacker Pass lithium project in Nevada.

The joint venture agreement granted the automaker a 38% interest in Thacker Pass. Lithium Americas ( LAC ) holds the remaining 62% stake in the project.

GM's investment includes US$430 million of direct cash funding to the joint venture to support phase-one construction and a US$195 million letter of credit facility.

As part of closing, GM put US$330 million in cash into the joint venture alongside US$138 million of funding from Lithium Americas ( LAC ). The remaining US$100 million cash contribution from GM, and Lithium Americas' ( LAC ) US$181 million contribution, will be contributed at the final investment decision for phase one, which is targeted in early 2025.

Lithium Americas ( LAC ) said GM will post the facility prior to first draw on the company's previously announced US$2.26 billion loan from the U.S. Energy Department, which is expected to occur in the middle of 2025.

"Together, Lithium Americas ( LAC ) and GM are focused on bringing Thacker Pass to production to significantly improve domestic output of critical lithium supply to reduce dependence on foreign suppliers and to start creating new jobs and bringing economic activity to northern Nevada," said Jonathan Evans, president and CEO of Lithium Americas ( LAC ).

Lithium Americas ( LAC ) has kept its Outperform rating and C$7.25 price target at National Bank of Canada following the news, with the bank noting an FID is expected in early 2025.

The company's share price jumped 5.85% at last look to $4.52 on the TSX.

Price: 4.51, Change: +0.24, Percent Change: +5.62