Deterra royalties: Thacker pass project secures initial $435m DOE loan draw

Deterra Royalties Limited has provided a portfolio update on the Thacker Pass Lithium Project, where it holds an effective 4.8% gross revenue royalty. Lithium Americas Corporation (LAC), the project operator, along with General Motors Holdings LLC, has reached a non-binding agreement in principle with the U.S. Department of Energy (DOE) for the first draw of $435 million from a previously announced $2.26 billion DOE loan.

This agreement includes a deferral of $182 million of debt service over the first five years and warrants for a 5% equity stake in LAC and a 5% economic stake in the joint venture for the DOE. The DOE will receive warrants to purchase common shares of LAC and a non-voting, non-transferable equity interest in the JV, both at an exercise price of $0.01 per share/unit. LAC will also post an additional $120 million to DOE loan reserve accounts. General Motors will support the project by amending its lithium offtake agreement, allowing the JV to enter into additional third-party offtake agreements.

The Thacker Pass project is targeting 160,000 tonnes-per-year of battery-quality lithium carbonate production over an 85-year mine life, with Phase 1 targeting 40,000 tonnes-per-year. Construction of Phase 1 is over 70% complete, with first steel installation at the processing plant completed in late August 2025 and first occupancy at the workplace hub in September 2025.