U.S. energy department buys stake in Vancouver mining company

Lithium Americas struck a deal with the U.S. Department of Energy (DOE) to acquire stakes of the company in return for debt deferment.

According to the Vancouver-based mining company, it allowed the DOE to become a five per cent shareholder while Lithium Americas can receive the first chunk of a previously announced $2.26 billion loan granted by the DOE.

The $435 million will be used for a lithium carbonate project in Nevada, which the Canadian mining company has been developing since 2023.

The agreement includes that $182 million of debt service will be deferred by the DOE over the first five years of the loan.

Together with American carmaker General Motors (GM), Lithium Americas founded a joint venture that manages the mine project.

The DOE acquired five per cent equity stake applies to Lithium Americas as well as to the joint venture.

The mine is expected to generate tons of lithium, a mineral that is increasingly in demand due to its usage in batteries and other grid storage products.