Lithium Americas, a mineral and mining company, has announced an investment of $250 million from fund entities managed by Orion Resource Partners (Orion), an investment firm dedicated to metals and materials. The investment will be used to develop and construct Phase 1 of the Thacker Pass lithium project in Humboldt County, Nevada.
Orion has committed to purchase senior unsecured convertible notes in the aggregate principal amount of $195 million and enter into a production payment agreement, whereby Orion will pay Lithium Americas $25 million in exchange for payments corresponding to the minerals processed and gross revenue generated by Thacker Pass.
Subject to the satisfaction of certain conditions, Orion has also committed to purchase an additional $30 million in aggregate principal amount notes within two years upon request by the company.
“Thacker Pass is a world-class project, and we are committed to providing investment solutions for metals and materials critical to sustainable economic growth and the energy transition,” said Istvan Zollei, Managing Partner of Orion
Lithium Americas expects the strategic investment from Orion to enable it to make an affirmative final investment decision on the Thacker Pass joint venture for Phase 1 concurrently with the closing of the initial $220 million investment. Completion of Thacker Pass Phase 1 is targeted for late 2027.
Orion has also agreed to support up to $500 million of financing for the construction and development of Phase 2 of Thacker Pass on a non-binding basis.
According to Mercom’s Annual and Q4 2024 Funding and M&A Report for Energy Storage and Smart Grid announced debt and public market financing for Energy Storage companies in 2024 increased 65% year-over-year, with $16.2 billion in 32 deals compared to $9.8 billion in 34 deals in 2023.
In July 2024, Liontown Resources, a battery minerals producer, secured a $250 million investment and a 10-year offtake extension from foundational partner LG Energy Solution, a manufacturer of lithium-ion batteries. The companies have executed agreements for five-year $250 million convertible notes with a 10-year offtake extension.
