Summary by Futu AI
Lithium Americas and General Motors have entered into an investment agreement on October 15, 2024, establishing a joint venture for the Thacker Pass lithium project. GM will acquire a 38% stake for $625 million, comprising $430 million in direct cash funding and a $195 million letter of credit facility to support DOE loan requirements. This replaces GM's previous $330 million Tranche 2 commitment.Under the agreement, Lithium Americas will retain a 62% interest and manage the project, while contributing $387 million in funding. GM will extend its existing offtake agreement to 20 years for up to 100% of Phase 1 production. Additionally, GM secured a 20-year offtake agreement for up to 38% of Phase 2 production volumes with first right of refusal on remaining output.The deal builds upon GM's previous $320 million investment from February 2023, which resulted in approximately 15 million common shares. As of June 30, 2024, Lithium Americas held approximately $376 million in cash and cash equivalents. The transaction completion is subject to conditions, including DOE loan agreement finalization.
