04:56 PM EDT, 10/28/2024 (MT Newswires) -- Lithium Americas ( LAC ) edged higher in after-hours New York trade after the company on Monday said it secured a US$2.26-billion loan from the US Department of Energy to build processing facilities at the Thacker Pass lithium project in Nevada.

Thacker Pass aims to produce 40,000 tonnes per year of battery-quality lithium carbonate in its first phase. The company plans to make a final investment decision and give full notice to proceed by the end of the year.

The loan will be supplemented by an investment agreement with General Motors (GM) announced on Oct. 16, to form a joint venture for Thacker Pass. General Motors will acquire a 38% ownership stake for US$625 million, including a US$195 million letter of credit facility to support reserve account requirements under the loan, the company said.

Thacker Pass aligns with the US government's goal to secure a domestic supply chain for critical minerals and reduce reliance on foreign materials, the company added.

Lithium America shares were last seen up US$0.03 to US$4.17 after hours. They closed up $0.68 to $5.77 on the Toronto Stock Exchange.