Lithium Americas Secures $250 Million Investment from Orion Resource Partners for Thacker Pass

Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) has announced a strategic $250 million investment from fund entities managed by Orion Resource Partners LP (collectively, "Orion"), a leading global investment firm dedicated to metals and materials. This investment is expected to achieve fully funded status at the project and corporate level for the development and construction of Phase 1 of the Thacker Pass lithium project in Humboldt County, Nevada ("Thacker Pass" or the "Project") for the duration of construction. Completion of Thacker Pass Phase 1 is targeted for late 2027.

Orion has committed to purchase senior unsecured convertible notes in the aggregate principal amount of $195 million (the "Notes") and enter into a Production Payment Agreement (the "PPA") with Lithium Americas. The Notes will mature in 2030 with a 9.875% annual interest rate and an initial conversion price of $3.78 per share. Under the PPA, Orion will receive fixed payments of $128-152 per tonne of lithium processed and 0.96-1.14% of gross revenue, capped at 41,500 tonnes annually.

The investment from Orion satisfies requirements from both the U.S. Department of Energy's $2.26 billion loan and General Motors, with the first DOE loan draw expected in Q3 2025. This strategic financing package enables Lithium Americas to achieve fully funded status for Phase 1 of Thacker Pass through construction completion, effectively eliminating the existential funding risk that has weighed on the stock.

The deal structure is sophisticated but favorable, with the convertible notes maturing in 2030 at a 9.875% interest rate and an initial conversion price of $3.78 (43% premium to 5-day VWAP), indicating Orion's confidence in long-term value. The production payment agreement's terms ($128-152/tonne fixed payments plus 0.96-1.14% of gross revenue) appear reasonable for development-stage financing.

Most critically, this investment unlocks access to the previously announced $2.26 billion DOE loan by satisfying remaining equity requirements, creating a complete funding stack. With contractors already issued full notice to proceed, the company now has both capital certainty and execution momentum targeting late 2027 production.

Orion's non-binding interest in potentially providing an additional $500 million for Phase 2 suggests confidence in the project's economics and provides a potential pathway for future expansion capital. The market cap ($559 million) relative to this investment and the total project scope indicates significant embedded value if execution proceeds as planned. This financing package effectively eliminates the existential funding risk that has weighed on the stock.

The Orion investment validates Thacker Pass as a technically viable, world-class lithium deposit worthy of institutional capital commitment. As one of North America's most significant lithium projects, securing this financing package represents a important de-risking step in transitioning from development to construction. The project has now cleared three major hurdles: environmental/permitting challenges, securing an experienced EPCM contractor (Bechtel), and now comprehensive financing. The only remaining milestone is the formal FID, which appears imminent following this investment.

The production schedule targeting late 2027 aligns with projected lithium demand growth cycles, potentially positioning Thacker Pass to enter production during a period of renewed market strength. The establishment of a technical committee with Orion-designated independent engineers suggests robust oversight of development milestones.

From a domestic supply chain perspective, Thacker Pass represents a cornerstone asset for U.S. critical minerals strategy. The project's strategic importance is underscored by DOE involvement and GM's partnership, positioning LAC as a potential leader in North American lithium production.

The phased development approach (starting with Phase 1) demonstrates prudent project management, allowing for technology optimization before larger-scale implementation. With contractors already at full notice to proceed, the project has transitioned from planning to active development, significantly reducing timeline risk assuming capital deployment proceeds as scheduled.



In conclusion, Lithium Americas' strategic investment from Orion Resource Partners is a significant milestone for the Thacker Pass project, securing fully funded status and unlocking access to the DOE loan. This investment validates the project's viability and positions it for successful execution, with a production schedule targeting late 2027. The project's strategic importance for U.S. critical minerals strategy and its potential to lead North American lithium production make it an attractive investment opportunity for those seeking exposure to the growing lithium market.