Lithium Americas (LAC) said Monday it closed its joint venture with General Motors (GM) to fund, develop, and operate the Thacker Pass lithium project in Humboldt County, Nevada.

The company said the project will supply battery-quality lithium carbonate for North America's critical minerals supply chain.

Under the joint venture, the company said it now holds a 62% interest in Thacker Pass and will manage the project, while GM has acquired a 38% stake for a total of $625 million, which includes $430 million in direct cash funding for phase 1 construction and a $195 million letter of credit facility.

The company said that as part of the closing, GM contributed $330 million in cash, while Lithium Americas contributed $138 million.

It added that the remaining $100 million cash contribution from GM, and its $181 million contribution will be made at the final investment decision for phase 1.

Additionally, GM will post the letter of credit facility before the first draw of Lithium Americas' $2.26 billion loan from the US Department of Energy, expected in mid-2025.

Shares of Lithium Americas rose 3% in premarket activity.