"The U.S. Department of Energy has taken equity stakes in Canadian company Lithium Americas and its Nevada mining joint venture with General Motors as part of a renegotiation of a federal loan. Under the new terms, the U.S. government will take a 5% equity ownership in Lithium Americas and a 5% ownership in the Lithium Americas-GM joint venture. The equity stakes will be acquired through no-cost warrants, which are financial instruments that give the government the right to purchase shares at a set price."
"The new terms came out of a renegotiation with the DOE's Loan Programs Office over a $2.26 billion loan that was awarded to Lithium Americas under the Biden Administration. Shares of Lithium Americas spiked 34% in after-hours trading. The DOE said the equity stakes will serve as additional collateral on the loan, helping to reduce repayment risk for taxpayers. Lithium is a key chemical element that is used in the batteries of electric vehicles and smartphones."
The U.S. Department of Energy will acquire 5% equity stakes in Lithium Americas and in the Lithium Americas–General Motors Nevada joint venture through no-cost warrants as part of a renegotiation of a $2.26 billion loan. The warrants provide the government rights to purchase shares at a set price and act as additional collateral to reduce repayment risk for taxpayers. Lithium Americas shares jumped 34% in after-hours trading. Lithium Americas is developing the Thacker Pass mine in Nevada, expected to produce enough lithium for up to 800,000 electric vehicles per year in phase one. The action follows administration plans to take stakes in Intel and MP Materials.
Read at TechCrunch
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