Lithium Americas has provided an update on the construction of its Thacker Pass lithium project in Humboldt County, Nevada. The project has received a conditional commitment for a $2.26 billion loan from the U.S. Department of Energy (DOE) under the Advanced Technology Vehicles Manufacturing Loan Program. This loan, along with a strategic investment from General Motors, is expected to cover the majority of the funding required for the first phase of the project, which aims to produce 40,000 tonnes of battery-grade lithium carbonate annually.
The company has completed site preparation, including clearing, commissioning a water supply system, and improving site access and infrastructure. Detailed engineering is currently 30% complete, with plans to further advance before issuing a full notice to proceed in the second half of 2024. A parcel of land has been leased in Winnemucca for a transloading terminal to support operations.
A National Construction Agreement has been entered with North America’s Building Trades Unions for the construction of the Thacker Pass project. The estimated total capital cost for Phase 1 construction has been revised to $2.93 billion, reflecting updates in planning and pricing, and the development of a housing facility for construction workers.
In 2023, approximately $194 million was spent on Thacker Pass, with expected lower expenditures in the first half of 2024 as focus shifts to engineering and planning. Mechanical completion of Phase 1 is targeted for 2027, with major construction anticipated to start in the latter half of 2024 following the closure of the DOE Loan.
The company has also taken measures to reduce its general and administrative expenses by over 25% in 2024, in response to current market conditions and to maintain liquidity until the DOE Loan closes.
The DOE loan is a key element of the project’s financing, potentially supporting the lithium needs for up to 800,000 electric vehicles annually. The conditional commitment from the DOE marks a significant step towards financing the project, with specific conditions to be met before the loan’s finalization.
General Motors’ investment of $650 million in Lithium Americas, the largest of its kind by an automaker in a battery materials producer, provides the company exclusive access to the project’s Phase 1 lithium production for up to 15 years, with a right of first offer on Phase 2 production. This investment, alongside the DOE Loan, is poised to substantially finance the Thacker Pass project’s first phase. 
