10-Q: Lithium Americas Achieves Key Milestones at Thacker Pass Project, Secures Full Funding for Phase 1

Lithium Americas Corp. reports progress on the Thacker Pass project, including securing full funding for Phase 1 and commencing major construction.

Summary

• Lithium Americas Corp. had approximately $446.9 million in cash and restricted cash as of March 31, 2025.
• Construction capital costs and other project-related costs of $78.2 million were capitalized during the quarter.
• The company closed a $250 million strategic investment from Orion Resource Partners, achieving fully funded status for Phase 1 of Thacker Pass.
• The final investment decision (FID) for Phase 1 construction was announced, with GM and Lithium Americas contributing $100 million and $191.6 million, respectively, to the joint venture.
• The first draw on the $2.26 billion loan from the Department of Energy (DOE) is expected in Q3 2025.
• Completion of Phase 1 of Thacker Pass is targeted for late 2027.
• Detailed engineering is over 60% complete and expected to exceed 90% by year-end 2025.
• Fabrication of structural steel commenced in April 2025, with installation targeted for September 2025.
• The first modular housing units were installed at the workforce hub, with occupancy targeted for the second half of 2025.
• A Plan of Operations was submitted to the BLM to build a limestone quarry named Western Quarry.

Sentiment

Score: 7

Explanation: The document is generally positive, highlighting significant progress in securing funding and advancing the Thacker Pass project. However, the company's recurring net losses and negative operating cash flows temper the overall sentiment.

Positives

• The company has secured full funding for Phase 1 of the Thacker Pass project.
• Major construction has commenced at Thacker Pass.
• Detailed engineering is progressing well and is expected to be over 90% complete by year-end 2025.
• The company expects to make the first draw on the DOE loan in Q3 2025.
• The company is planning to build a limestone quarry to reduce costs.

Negatives

• The company has recurring net losses and negative operating cash flows.
• The company expects to continue to operate at a loss for the foreseeable future.
• The company will not generate revenues from operations until Thacker Pass begins production, targeted for late 2027 with ramp up during 2028.
• General and administrative expenses for Q1 2025 increased to $6.5 million, compared with $5.8 million in Q1 2024, due to higher professional fees.
• The loss on change in fair value of the investment in Ascend Elements for Q1 2025 of $1.7 million compared with no change in Q1 2024, reflecting the overall downturn of the battery recycling market in late 2024 that continued into Q1 2025.

Risks

• The underlying values of mineral properties, plant and equipment, including Thacker Pass, are dependent on the existence of economically recoverable reserves.
• The company's business and results of operations may be adversely affected by uncertainty and changes in U.S. trade policies, including tariffs.
• The DOE Loan imposes certain restrictions on the transfer of assets from LN to the Company.
• There can be no assurance that the Company will successfully complete all of its contemplated financing plans.
• The company is involved in various legal and regulatory actions and proceedings which arise in the ordinary course of business.

Future Outlook

The company targets completion of Phase 1 of Thacker Pass by late 2027 and expects to make the first draw on the DOE Loan in Q3 2025. The company believes that it will have sufficient cash resources to carry out its business plans, including the currently planned development activities at Thacker Pass, for at least the next 12 months.

Management Comments

• With the Orion Investment, Lithium Americas has achieved fully funded status for the development of Phase 1 of Thacker Pass at the project and corporate level for the duration of construction.

Industry Context

This announcement comes amid increasing demand for lithium to support the growing electric vehicle market and the development of a domestic battery supply chain in the United States. The Thacker Pass project is strategically important for securing a domestic supply of lithium.

Comparison to Industry Standards

• Lithium Americas is developing Thacker Pass, a sedimentary-based lithium project, while other companies like Albemarle and SQM primarily extract lithium from brine and spodumene deposits.
• The $2.26 billion DOE loan is a significant financial commitment, comparable to government support for other large-scale energy projects.
• The offtake agreement with GM is similar to other supply agreements between lithium producers and battery manufacturers or automakers, such as Ganfeng Lithium's agreement with Tesla.
• The strategic investment from Orion Resource Partners is a common financing strategy in the mining industry, similar to royalty and streaming agreements used by companies like Wheaton Precious Metals.

Legal Proceedings

• In April 2025, the court upheld the State Engineers decision in relation to due process and most of the other issues that were appealed, while remanding two questions to the State Engineer for further analysis.
• The claimant has filed an appeal to the Nevada Supreme Court which, prior to its possible consideration of the case, has referred the matter to the courts settlement program.

Related Party Transactions

• The development of Thacker Pass is undertaken through a joint venture with General Motors Holdings LLC (GM).

Stakeholder Impact

• The Thacker Pass project is expected to create jobs and contribute to the local economy.
• The project aims to support the electric vehicle market by providing a domestic source of lithium.
• The company is committed to sustainable development and limiting the environmental impact of the project.

Next Steps

• Continue project engineering and procurement to support construction.
• Advance fabrication of structural steel and target first steel installation in September 2025.
• Continue manufacturing of long-lead equipment and target delivery in line with the project schedule.
• Target first occupancy of the Workforce Hub in the second half of 2025.
• Advance the Plan of Operations for the Western Quarry.

Key Dates

Keywords

Lithium Americas, Thacker Pass, Lithium, DOE Loan, General Motors, Orion Resource Partners, Construction, Phase 1, Lithium carbonate, Mining