Lithium Americas marked 2024 as a pivotal year by securing key funding, partnerships, and infrastructure to advance Phase 1 of its Thacker Pass lithium project in Nevada. The company ended the year with $594.2 million in liquidity and capitalized nearly $180 million in project-related costs. It secured a $250 million strategic investment from Orion Resource Partners, a $625 million joint venture with GM, and a $2.26 billion loan from the U.S. Department of Energy.
Thacker Pass remains on track to begin production in late 2027, with detailed engineering over halfway complete and major construction expected to begin mid-2025. Lithium Americas also completed a $275 million equity raise and received a $11.8 million Department of Defense grant. A recent technical report confirms Thacker Pass holds the world’s largest known measured and indicated lithium resource, supporting plans for future expansion and an 85-year mine life. The company retains a 62% stake in the project, while GM holds 38%.
#Why This Is Important for Retail Investors
Secures Full Funding for Phase 1: Lithium Americas now has the capital in place to fully fund construction through completion, reducing financing risk for investors.
Backed by Major Partners: Strategic investments from GM, Orion, and the U.S. government validate the project’s importance and enhance credibility.
Long-Term Growth Potential: Updated resource estimates support future expansion plans that could quadruple output and extend mine life to 85 years.
Clear Path to Production: With construction beginning in 2025 and production targeted for 2027, the company offers a defined development timeline.
Exposure to U.S. Lithium Supply Chain: Thacker Pass plays a key role in building a domestic battery materials supply chain, aligning with national priorities and energy transition trends.
#About the Company
Lithium Americas is focused on responsibly developing its Thacker Pass lithium project in Nevada. This project is notable for housing the largest lithium resource in the world.
The company concentrates on extracting lithium from Thacker Pass, which is essential for manufacturing batteries used in electric vehicles. By advancing its phase one operations, it aims to produce battery-grade lithium carbonate efficiently, benefiting from strong market trends.
As of today, Lithium Americas has a market cap of approximately $590 million. The company has shown a steep decline in its stock performance,-53.64% in the past year.
#Risks and Challenges
Despite the promising prospects, Lithium Americas must navigate regulatory challenges, potential project delays, and fluctuating lithium prices that can impact profitability. Environmental concerns also pose threats, as public scrutiny regarding sustainable practices continues to rise in the mining sector. Lithium Americas faces competition from companies such as Albemarle Corporation, Livent Corporation, and Sociedad Química y Minera de Chile (SQM). These competitors are also heavily invested in lithium extraction and production, working to establish their own supply chains.