Lithium Americas Corp (NYSE:LAC) (TSX:LAC) shares are trading higher after the company recently reached a non-binding agreement in principle with the U.S. Department of Energy (DOE) to advance the first draw of $435 million on its previously announced $2.26 billion DOE loan.
What Happened: The agreement, reached together with General Motors , LAC’s joint venture partner in the Thacker Pass lithium project, represents a major step forward in securing federal financing for the large-scale domestic lithium operation. The first draw terms mark progress on one of the largest DOE loans in the critical minerals sector.
“We greatly appreciate the support of the Administration, General Motors and our partners in advancing this vital world-class project,” said Jonathan Evans, president and CEO of Lithium Americas. “Together, we are onshoring large-scale U.S. lithium production, strengthening America’s supply chain, creating exceptional jobs and enhancing our long-term energy security and prosperity.”
The funding agreement comes as the U.S. government prioritizes domestic critical mineral production through various programs and incentives. GM’s continued partnership in the joint venture underscores major automakers’ interest in securing stable, domestic sources of lithium for battery production.
LAC Price Action: Lithium Americas shares were trading 29.59% higher at $8.88 on Friday, according to Benzinga Pro.
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