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Lithium Americas said early on Thursday that it would raise $275 million to accelerate construction and development of the Thacker Pass lithium project in Nevada.
The company will sell 55 million shares for $5 per share, Lithium Americas said, a month after the US unveiled plans to lend it $2.26 billion to build the project.
The project is expected to run at full capacity in 2028, aiming to eventually produce 80,000 metric tons per year. The company aims to extract lithium at Thacker Pass from a large clay deposit, something that has never been done before at commercial scale.
The loan, announced last month, is a key part of the Biden administration’s effort to reduce dependence on lithium supplies from China. The mine is slated to open later this decade and be a key supplier to General Motors.
Vancouver-based Lithium Americas said it would grant the underwriters of the public offering a 30-day option to purchase up to an additional 8.3 million shares, it said in a statement.
US-listed shares of Lithium Americas closed at $6.63 on Wednesday. Post-market, the stock fell 19%.
(By Mrinmay Dey; Editing by Subhranshu Sahu)
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