Lithium Americas (LAC) said late Wednesday it is set to receive a $250 million investment from fund entities managed by Orion Resource Partners for the development and construction of the phase 1 of the Thacker Pass lithium project in Humboldt County, Nevada.

Orion has committed to purchase $195 million of senior unsecured convertible notes and enter into an agreement to pay Lithium Americas $25 million in exchange for payments related to the minerals processed and gross revenue generated by the project. Orion has also committed to buy an additional $30 million in the notes within two years.

Lithium Americas said the investment is expected to close the week of March 10, while completion of phase 1 is targeted for late 2027.

The company expects the initial $220 million investment to satisfy all remaining requirements from both the US Department of Energy and General Motors (GM) to satisfy all remaining equity capital fundraising requirements under a previously announced $2.26 billion loan from the DOE.

Lithium Americas said Orion has agreed to assess the potential to support up to $500 million of financing for the construction and development of the project's phase 2.