This week, Lithium Americas (NYSE:LAC) (TSE:LAC) provided a key update on its Thacker Pass project, alongside its first-quarter results. The Thacker Pass project, owned by the lithium exploration and development company, holds the largest known Measured and Indicated (M&I) lithium resource in North America.
Progress at Thacker Pass
LAC has completed site preparation and expects major construction at Thacker Pass to begin in the second half of this year. Earlier this year, LAC received a conditional commitment for a $2.26 billion loan from the U.S. Department of Energy (DOE) to set up processing facilities at Thacker Pass. It plans to produce around 40,000 tons of battery-grade lithium carbonate annually from Phase 1 of the project.
And Its Strategic Importance
Notably, General Motors (NYSE:GM) has agreed to a $650 million investment in LAC to advance the project. This is the largest investment by an automotive producer in a company to produce battery-grade raw materials. Importantly, the Phase 1 of Thacker Pass is estimated to produce enough lithium to support production of up to 800,000 EVs per year, and GM has exclusive access to lithium production from Phase 1 for up to 15 years. The automaker also has a right of first offer on Phase 2 of Thacker Pass.
The Thacker Pass project, with its scale, could play a critical role in the U.S.’ drive to secure domestic supplies for critical minerals. LAC anticipates production from the Phase 1 to begin in 2027.
What Is the Stock Price Forecast for LAC?
Despite steady progress at Thacker Pass, Lithium America’s share price has tanked by nearly 36% over the past six months amid challenging times for the broader lithium industry. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average LAC price target of $7.57.
Read full Disclosure
