LAC

Business Context and Reporting Period

Company: Lithium Americas Corp. (LAC)
Filing Type: Form 8-K (Current Report)
Date of Report: January 7, 2025
Subject: Announcement of increased mineral resource and mineral reserve estimates for the Thacker Pass lithium project in Humboldt County, Nevada, effective December 31, 2024. The filing incorporates independent NI 43-101 and S-K 1300 technical reports.
Ownership Structure: Thacker Pass is a joint venture between Lithium Americas (62% ownership) and General Motors Holdings LLC (38% ownership), established in Q4 2024.

Key Financial and Operational Metrics

Mineral Resources (100% Project Basis, Dec 31, 2024):

• Measured + Indicated: 2,673.7 million metric tonnes (Mt) at 2,070 ppm Lithium, containing 29.5 Mt of Lithium Carbonate Equivalent (LCE).
• Inferred: 1,981.5 Mt at 2,070 ppm Lithium, containing 21.6 Mt LCE.

Mineral Reserves (100% Project Basis, Dec 31, 2024):

• Proven + Probable: 1,056.7 Mt at 2,540 ppm Lithium, containing 14.3 Mt LCE.
• Mine Life: 85 years.

Production Capacity:

• Phases 1-4: Nominal 40,000 tonnes per annum (tpa) of lithium carbonate each (Total: 160,000 tpa).
• Phase 5: Brine production only to support Phases 1-4.
• Start of Production: Anticipated Q4 2027.

Capital and Operating Costs (Base Case):

• Total Development Capital (LOM): $12.441 billion (including 15% contingency).
• Sustaining Capital (LOM): $6.921 billion.
• Closure Costs: $462 million.
• Average Annual Operating Cost: $1,086 million ($8,039 per tonne of product).

Financing:

• DOE Loan: $2.3 billion closed under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program.
• Grant: $11.8 million from the U.S. Department of Defense for infrastructure.

Material Changes Versus Prior Period

Resource and Reserve Growth:

• Measured + Indicated Resources: Increased by 119% in tonnage and 144% in LCE compared to the December 31, 2023 estimate.
• Proven + Probable Reserves: Increased by 386% in tonnage and 286% in LCE compared to the December 31, 2023 estimate.

Drivers of Change:

• Drilling: Additional drill holes from the 2023 campaign expanded resources in southern and eastern areas.
• Geological Modeling: Updated domaining reduced grade smearing, increasing average lithium grades.
• Pricing Assumptions: Lithium price assumption increased from $22,000/tonne (2022/2023) to $29,000/tonne (2024), allowing for a lower cutoff grade (858 ppm Li) and inclusion of more tonnage.
• Ownership: Transition from 100% LAC ownership (2023) to a 62% LAC / 38% GM joint venture (2024).

Outlook, Risks, and Contingencies

Financial Outlook (Base Case):

• Net Present Value (NPV) @ 8%: $8.7 billion.
• Internal Rate of Return (IRR): 20.0%.
• Payback Period: 8.7 years (undiscounted).
• Sensitivity: Project value is highly sensitive to lithium carbonate selling price and CAPEX; relatively insensitive to recovery rates and OPEX.

Permitting and Infrastructure:

• Status: All major federal, state, and local permits for Phase 1 and 2 are secured. A modified Plan of Operations was approved by BLM in June 2024.
• Future Requirements: Future phases (3-5) will require additional environmental analysis, a Supplemental EIS, and permits for infrastructure changes (rail line, highway relocation, transmission line relocation).

Risks and Contingencies:

• Commodity Price: Economic viability is sensitive to lithium price fluctuations (Base case $24,000/tonne for reserves; $29,000/tonne for resources).
• Regulatory: Potential need for modified state permits for mining below the water table; future phases require new NEPA analysis.
• Environmental: Management of clay tailings via filtered stack method; protection of Greater Sage-Grouse habitat.
• Construction: Relocation of State Route 293 and 115 kV transmission lines required during years 39-40 of the mine plan.

Investor Verification Checklist

• Technical Reports: Review the full NI 43-101 and S-K 1300 Technical Reports (Exhibit 96.1) for detailed assumptions on geology, metallurgy, and economics.
• Joint Venture Terms: Verify the specific governance and off-take agreement details between LAC and General Motors.
• Permitting Timeline: Confirm the schedule for the Supplemental EIS and infrastructure relocation permits required for Phases 3-5.
• Capital Funding: Monitor the status of the $2.3B DOE loan disbursement and the funding strategy for Phases 2-5 (planned to be self-funded from operating cash flow).
• Production Schedule: Track progress toward the Q4 2027 start of production date and Phase 1 commissioning.