Thacker Pass
Thacker Pass – the largest measured lithium reserve and resource in the world
Location:
Nevada, USA
Operator:
Lithium Americas (LAC)
Asset Stage:
Development (construction)
Commodities:
Lithium
Mine Type:
Open Pit
Royalty Key Terms:
1.05% Gross Revenue Royalty over Thacker Pass Project(1)
Asset Overview
Thacker Pass is a lithium clay project located in northern Nevada, USA, that contains the largest measured lithium reserve and resource in the world with project economics for an 85-year mine life(2).
The Project is 62% owned and fully operated by Lithium Americas Corporation with General Motors Holdings LLC (GM) a key strategic partner owning 38%, contributing significant funding and offtake for Phase 1 production(2).
Lithium Americas announced a positive Final Investment Decision for Phase 1 of Thacker Pass(3). Major construction has commenced at the project with first production from Phase 1 anticipated to occur in late 2027. Bechtel has been appointed the EPCM contract for construction(4). Phase 1 construction funding is being met via US$945m in GM funding and a US$2.26 billion loan provided via the US Department of Energy loan(5).
Royalty Overview
Deterra’s royalty agreement with LAC includes:
- 60% interest in a Gross Revenue Royalty (GRR)
- 4.8% GRR reducing to 2.4% after $13.2m royalty payments received (60% attributable basis), subject to buy back rights (outlined below).
- Right to reduce royalty to 1.05% (60% attributable basis) if LAC elect buy-back by paying US$13.2m (net to Deterra).
Thacker Pass Targeting Total Production
Thacker Pass is targeting total production capacity of 160,000 tonnes per annum (tpa) of battery-quality lithium carbonate to be developed in four phases of 40,000 tpa, respectively (Phases 1-4)(2).
Thacker Pass Phase 1 production could support lithium needs for up to 800,000 EVs annually(6).
Notes
- On an attributable basis (60%). Assumes Lithium Americas’ buyback right is exercised.
- Lithium Americas announcement January 7, 2025.
- Lithium Americas announcement April 1, 2025
- Lithium Americas announcement dated March 14, 2024.
- Lithium Americas corporate presentation dated January 2025.
- Lithium Americas announcement dated October 28, 2024.
