Orion has committed to purchase senior unsecured convertible notes in the aggregate principal amount of US$195 million (the Notes) and enter into a Production Payment Agreement (PPA) whereby Orion will pay Lithium Americas US$25 million in exchange for payments corresponding to the minerals processed and gross revenue generated by Thacker Pass (together, the Notes and PPA represent an aggregate initial investment of US$220 million). Orion has committed, subject to the satisfaction of certain conditions precedent, to purchase an additional US$30 million in aggregate principal amount Notes within two years (the Delayed Draw Notes) upon request by the company. Together, the Notes, PPA, and Delayed Draw Notes represent an aggregate US$250 million investment for the development and construction of Phase 1 of Thacker Pass. The investment is expected to close the week of 10 March 2025, subject to the satisfaction of certain closing conditions. The investment establishes a long-term partnership with a premier resource investment firm with extensive experience in landmark projects. In addition, Orion has agreed, on a non-binding basis, to evaluate the potential to support up to US$500 million of financing for the construction and development of Phase 22 of Thacker Pass.
Jonathan Evans, Lithium Americas’ President and CEO, said:
“Orion’s long-term investing horizon and experience with resource development makes them an excellent partner for Lithium Americas and Thacker Pass and contributes to our strong relationships with General Motors and the US Department of Energy. Orion’s commitment to this Project highlights the strategic importance of Thacker Pass to national security and developing a domestic supply chain, as we work to reduce American dependence on foreign suppliers for critical minerals.”
Oskar Lewnowski, Orion’s Founder and Group CEO, added:
“Orion is excited to make this strategic investment in Lithium Americas to support the development of a domestic lithium supply chain to meet the rising demand across industries.”
Istvan Zollei, Managing Partner of Orion commented:
“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.”