Lithium Americas Corp. has reported its full-year results for 2024, showcasing significant financial achievements and updates on its Thacker Pass lithium project, which is poised to become a cornerstone of North America's lithium supply chain.
As of December 31, 2024, Lithium Americas ended the year with a robust cash position of $594.2 million, bolstered by a series of strategic investments and financing arrangements. The company capitalized $179.9 million in construction costs throughout the year, indicating a strong commitment to advancing its projects.
Key developments during the year included a $250 million strategic investment from Orion Resource Partners, the closure of a $2.26 billion loan from the U.S. Department of Energy (DOE) for Phase 1 construction, and the formation of a joint venture with General Motors worth $625 million, granting GM a 38% stake in the Thacker Pass project. Additionally, Lithium Americas completed a $275 million public offering of 55 million shares in April 2024.
The Thacker Pass project is progressing steadily, with over 55% of detailed engineering now complete. An updated mineral reserve estimate reveals 14.3 million tonnes of lithium carbonate equivalent, supporting an ambitious expansion plan aimed at achieving a production capacity of 160,000 tonnes per year over an impressive 85-year mine life. Production is targeted to commence in late 2027.
Jonathan Evans, President and CEO of Lithium Americas, stated, “2024 was a transformational year in moving Thacker Pass forward to develop a North American lithium supply chain. We successfully put in place the partnerships and capital required to develop and construct Phase 1 of Thacker Pass, as well as the internal governance and structures to support the growing organization.”
Despite the positive developments, the company reported a net loss of $42.6 million for the year, primarily attributed to increased transaction costs and other expenses. The loss per share was recorded at $0.21, reflecting a rise compared to the previous year. As of December 31, 2024, total assets stood at $1,044.9 million, while total liabilities reached $99.6 million.
The Thacker Pass project, located in Humboldt County, Nevada, is highlighted as the largest lithium Measured and Indicated Resource in the world. The project is being developed in multiple phases, with Phase 1 targeting an initial production of 40,000 tonnes per year of battery-grade lithium carbonate.
Construction for Phase 1 began in February 2023, with significant progress made in site preparation, including major earthworks and infrastructure improvements. The completion of this phase is anticipated for late 2027, with full capacity production expected by 2028, which is projected to support lithium needs for up to 800,000 electric vehicles annually.
The company is also making strides in community engagement, having signed a Community Benefits Agreement with the Fort McDermitt Paiute and Shoshone Tribe. This agreement includes commitments to build a community center and provide training and employment opportunities, emphasizing the company's focus on local development.
Additionally, Lithium Americas is collaborating with Great Basin College to develop a Workforce Development Training program aimed at fostering local hiring and skill development. In 2024, the company completed 195,573 work hours at Thacker Pass without a serious injury or lost-time incident, reflecting its commitment to health and safety.
Looking ahead, the company is focused on de-risking project execution by advancing detailed engineering, project planning, and procurement packages. The first draw on the DOE loan is anticipated in the third quarter of 2025, with the project expected to achieve fully funded status through the combined investments from GM, Orion, and the DOE loan.
However, challenges remain. The company faces risks related to permitting, financing, and regulatory changes, which could affect the commercial viability of the Thacker Pass project. The recent Executive Order signed by President Trump in January 2025, which paused the disbursement of funds appropriated through the Inflation Reduction Act, could potentially impact the company's ability to amend the DOE loan, leading to increased costs and delays.
In conclusion, while Lithium Americas navigates a complex landscape of financial and operational challenges, the advancements at Thacker Pass position the company as a key player in the North American lithium market, with substantial growth potential on the horizon.
