Lithium Americas Reports $42.6 Million Net Loss and Advances Thacker Pass Project

Lithium Americas Corp. (LAC) reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2024. The company recorded a net loss of $42.6 million, a substantial increase from a loss of $5.1 million in the previous year. This increase is attributed to higher general and administrative expenses, transaction costs related to financing activities, and changes in the fair value of financial instruments. The company's total assets surged to $1.04 billion, up from $436.9 million in 2023, primarily due to the completion of a public offering and the establishment of a joint venture with General Motors (GM).

In terms of operational progress, LAC has made strides in the development of its flagship Thacker Pass lithium project in Nevada. The company has commenced construction on Phase 1, which aims to produce 40,000 tonnes per year of battery-grade lithium carbonate. The project is expected to be fully funded through a combination of a $2.26 billion loan from the U.S. Department of Energy (DOE), a $625 million investment from GM, and a recent $250 million investment from Orion Resource Partners. The first draw on the DOE loan is anticipated in the third quarter of 2025, with project completion targeted for late 2027.

The joint venture with GM, finalized in December 2024, has positioned LAC to leverage GM's resources and expertise in the electric vehicle market. GM holds a 38% interest in the Thacker Pass project, while LAC retains a 62% stake. This partnership includes a long-term offtake agreement, allowing GM to purchase up to 100% of Phase 1 production for 20 years, which is expected to support the lithium needs for approximately 800,000 electric vehicles annually.

As of December 31, 2024, LAC's cash, cash equivalents, and restricted cash totaled $594.2 million, a significant increase from $195.8 million in the previous year. The company has also reported a decrease in exploration expenditures, reflecting the transition to construction activities at Thacker Pass. The total development capital costs for the project are estimated at $12.44 billion, with sustaining capital costs projected at $6.92 billion over the 85-year mine life.

Looking ahead, LAC remains focused on advancing the Thacker Pass project while navigating the complexities of the lithium market, which is influenced by global demand for electric vehicles and lithium-ion batteries. The company anticipates that the successful development of Thacker Pass will enhance North America's lithium supply chain and reduce reliance on foreign sources. However, the company acknowledges the inherent risks associated with project financing, regulatory approvals, and market conditions that could impact its operational and financial performance.