Lithium Americas Analyst Highlights Thacker Pass Construction Momentum, 60% Engineering Complete

JP Morgan analyst Bill Peterson visited Lithium Americas Corp.’s LAC Tech Center and Thacker Pass sites in Nevada earlier this week and met with management and key project leaders.

Peterson noted that construction is underway at the Tech Center and Thacker Pass sites, with mechanical completion targeted for late 2027 and full Phase 1 output expected within 6 to 12 months after that.

Monthly spending of $50 million–$70 million continues as Lithium Americas works through the loan process of the U.S. Department of Energy (DOE), which requires the company to use up its existing cash and funds from General Motors Company GM and Orion first, the analyst writes.

Also Read: Lithium Americas Finalizes Financing US Lithium Project With GM, Orion Resource Partners

Parallel efforts are ongoing with the DOE, focusing on daily operations and getting ready for the first loan advance, still anticipated in the third quarter of 2025.

Bechtel and Sawtooth Mining workers were seen on-site continuing preparation work, and project team members noted a sharp uptick in activity since late last year.

Around 60% of detailed engineering is now complete, and concrete has been poured. Steel deliveries are expected in August, with installation set for late August or September, a key milestone.

The team remains focused on staying within budget and ramping Phase 1 while preserving flexibility for future phases. The Workforce Hub is also under construction and is expected to be ready for occupancy in the second half of 2025 to accommodate a worker increase from 300 to 1,000 by year-end.

Peterson added that access to power lines, highways, rail, and water through nearby towns helps reduce infrastructure costs and supports workforce retention.

He also viewed the planned locations for major facilities, including the sulfuric acid plant, carbonate plant, filtration, leaching and neutralization systems, and tailings area.

During the management meeting, the analyst noted discussions centered on lithium pricing and market trends, with the team expecting a supply deficit next year as weak prices delay new capacity.

Lithium Americas projects a temporary price peak of $40,000 per ton due to tightening supply, with a long-term price stabilizing around $20,000 per ton, enough to support future investments.

The offtake agreement with General Motors includes a floor price above current Chinese spot rates, ensuring profitability even after factoring in all-in costs like sustaining capex and debt repayments.

Management remains focused on executing Phase 1, while Phase 2 timing will depend on market conditions. For now, low-cost, low-risk steps are being taken to keep Phase 2 on track.

The General Motors partnership also offers flexibility to contract up to 12 years for Phase 2, supporting both financing and expansion efforts.

Price Action: LAC shares are trading lower by 3.02% to $2.57 at last check Friday.

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