LAC.TO · 2025-01-07 12:00:00

Lithium Americas Increases Mineral Resource and Reserve for Thacker Pass

Resource Estimates

(All amounts in US$ unless otherwise indicated)

VANCOUVER, British Columbia--(BUSINESS WIRE)--January 7, 2025--Lithium Americas

Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) announced an

increased mineral resource and mineral reserve estimate for the Thacker Pass lithium project in

Humboldt County, Nevada (“Thacker Pass” or the “Project”), including the release of an

independent National Instrument 43-101 (“NI 43-101”) technical report (“Technical Report”)

entitled “NI 43-101 Technical Report on the Thacker Pass Project Humboldt County, Nevada,

USA,” and an independent S-K 1300 technical report (the “S-K 1300 Technical Report”)

entitled “S-K 1300 Technical Report on the Thacker Pass Project Humboldt County, Nevada,

USA,” both dated effective December 31, 2024. The Project is indirectly owned by Lithium

Nevada Ventures LLC (“LN”). LN is a joint venture between the Company, which has a 62%

ownership, and General Motors Holdings LLC (“GM”), which has a 38% ownership.

Jonathan Evans, President and CEO, commented, “We are excited to release the results of our

Thacker Pass Technical Report that demonstrates the multigenerational opportunity for

transformational growth the Project creates. Thacker Pass is now the largest measured lithium

reserve and resource in the world and has the potential to become an unmatched district,

generating American jobs and helping the U.S. regain independence of its energy supply. We are

committed to safely and sustainably developing Thacker Pass while engaging with our

stakeholders to increase domestic production of critical minerals.”

HIGHLIGHTS

 Proven and Probable (“P&P”) mineral reserve estimate of 14.3 million tonnes (“Mt”)

lithium carbonate equivalent (“LCE”) at an average grade of 2,540 parts per million

(“ppm”) lithium (“Li”), an increase of 286% since the November 2022 Feasibility

Study1; supports an expansion of up to five phases with an 85-year mine life.

 Measured and Indicated (“M&I”) mineral resource estimate of 44.5 Mt LCE at an

average grade of 2,230 ppm Li; an increase of 177% since the November 2022 Feasibility

Study.

 Expansion plan targeting 160,000 tonnes per year (“t/y”) of battery-quality lithium

carbonate (“Li2CO3”) production capacity in four phases of 40,000 t/y each, respectively

(“Phase 1,” “Phase 2,” “Phase 3” and “Phase 4”), with a sulfuric acid plant without an

additional Li2CO3 production circuit as Phases 1-4 are expected to have excess capacity

(“Phase 5”). Phase 4 expansion incorporates a direct rail line from Winnemucca to

Thacker Pass.

 Project economics for an 85-year life of mine (“LOM”) (“Base Case”) and an optimized

production scenario for years 1-25 of the 85-year LOM (“Years 1-25” or “Production

Scenario”). Both the Base Case and Production Scenario use a price assumption of

$24,000 per tonne of Li2CO3.

 Average annual EBITDA2 for the Production Scenario is estimated at $2.2 billion

per year and $2.1 billion per year for the Base Case.

 Production Scenario after-tax net present value (“NPV”) of $5.9 billion at 8%

discount and 19.6% after-tax internal rate of return (“IRR”), and Base Case after-

tax NPV of $8.7 billion at 8% discount and 20.0% after-tax IRR.

 Production Scenario operating costs (“OPEX”) of $6,238 per tonne lithium carbonate

produced, and Base Case OPEX of $8,039 per tonne lithium carbonate produced.

 Capital cost (“CAPEX”) estimates for Phase 1 of $2.93 billion (as previously disclosed

in March 2024), Phase 2 of $2.33 billion, Phase 3 of $2.74 billion, Phase 4 and 5 together

of $4.32 billion, based on cost estimates from Q2 2024 and include a 15% contingency.

 Construction of each of Phases 1 through 4 is expected to be spaced four years apart, with

Phase 5 beginning at the same time as Phase 4.

 Phase 1 is expected to create nearly 2,000 jobs during construction and approximately

350 full-time jobs during operations. Over the LOM, an average of approximately 1,100

full-time employees are expected to support mining and processing operations.

Additional jobs are expected to be created in the local communities through ancillary and

support services, such as transportation, maintenance and supplies.

 Phase 1 is targeted for completion in late 2027. The Company is targeting to announce

the final investment decision (“FID”) for Phase 1 in early 2025. Bechtel is the

engineering, procurement and construction management (“EPCM”) contractor for the

construction of Phase 1.

1 For more details, refer to the Company’s Feasibility Study entitled “Feasibility Study National

Instrument 43-101 Technical Report for the Thacker Pass Project Humboldt County, Nevada,

USA”, dated effective November 2, 2022, available on SEDAR+.

2 Earnings before income, taxes, depreciation and amortization (“EBITDA”) is a non-GAAP

financial measure, refer to Non-GAAP Measures for more information.

PROJECT IMPROVEMENTS

The Thacker Pass Technical Report results reflect continuous improvement initiatives, including

optimizing the mine plan and incorporating results of test work completed at the Company’s

Lithium Technical Development Center.

The Thacker Pass deposit allows the mine to have multiple grades of ore exposed at any given

time, enabling flexibility to deliver optimum ore blends as needed to maximize economics. The

Company has developed an optimized mine plan which allows an approximate 25% increase in

recovery for the first 12 years of production, providing a higher economic return during the years

of capital investment for building Phases 2 through 5.

Process optimizations and engineering development updates include:

 Beneficiation circuit: the number of decanter centrifuges reduced from six to four.

 Counter-current Decantation (“CCD”) thickeners: smaller diameter.

 Filter presses: reduced from eight membrane type to four recessed chamber type.

 Brine evaporators: reduced from three to two.

 Sulfuric acid plant for Phase 1 through 4: size of plant reduced from the previous 3,000

tonnes per day (“t/d”) sulfuric acid to 2,250 t/d sulfuric acid, reducing the transportation

and consumption of liquid sulfur.

 Final polishing step where low levels of calcium and magnesium are removed: improved

reaction parameters in the calcium precipitation circuit reduce loading on ion exchange.

 Reagents: reduced soda ash consumption in the lithium carbonate circuit.

To maximize the life of mine, ore control parameters would be lowered after the construction of

Phase 1 through 5 is completed. Phase 5 would consist of a 3,000 t/d sulfuric acid plant and a

brine plant to supplement feed to the processing plants of Phases 1 through 4, to maintain their

nominal production capacity at 40,000 t/y.

Estimated OPEX for Years 1-25 is approximately $500 per tonne lower (~7%), than the

November 2022 Feasibility Study. Lower raw material (reagent) consumption and costs,

decreased maintenance on less equipment and reduced tailings placement (due to less tailings

produced) were offset by higher mining costs to achieve the optimized mine plan, power utility

costs based on final selection of power provider and general and administrative costs for

insurance.

TECHNICAL REPORT SUMMARY

December 2024 Thacker Pass Technical Report

Results (US$)

Production Scenario

(Years 1-25)

Base Case

(85-year LOM)

Mineral resource (Measured & Indicated) 44.5 Mt LCE at a grade of 2,230 ppm Li

Mineral reserves (Proven & Probable) 14.3 Mt LCE at a grade of 2,540 ppm Li

Ore reserve life 85 years

Operational life 25 years 85 years

Nominal production capacity

160,000 t/y Li2CO3

(Phases 1-4 at 40,000 t/y Li 2CO3 each, with additional

Phase 5 producing brine to feed to Phases 1-4 lithium

processing plants)

Mining method Continuous open-pit mining

Processing method Sulfuric acid leaching

Metallurgical Recovery 82.1% 80.4%

Initial capital costs – Phase 1 $2.93 billion

Initial capital costs – Phase 2 $2.33 billion

Initial capital costs – Phase 3 $2.75 billion

Initial capital costs – Phase 4 and 5 (includes rail) $4.32 billion

Sustaining capital costs $1.55 billion $6.92 billion

Operating Costs (average) (per tonne LCE) $6,238 $8,039

Lithium carbonate price assumption (per tonne) $24,000

Average Annual EBITDA (per year) $2.2 billion $2.1 billion

After-tax NPV @ 8% Discount Rate $5.9 billion $8.7 billion

After-tax IRR 19.6% 20.0%

CONSTRUCTION TIMELINE

Construction of Thacker Pass to reach total nominal design capacity of 160,000 t/y of Li 2CO3 is

planned over five phases. Each of Phases 1 through 4 are expected to be spaced 4 years apart

with Phase 5 beginning at the same time as Phase 4. Construction of Phases 2 through 5 is

expected to occur over a 13-year period, from the start of Phase 1 first production. Phase 4

expansion includes a direct rail line to Thacker Pass for the transportation of raw materials and

finished product. The lithium carbonate production plants for Phase 1 through 4 is expected to

have excess capacity that would take brine feed from Phase 5 to maintain their nominal

production capacity of 40,000 t/y. Additional required permitting for Phases 2 through 5 will be

initiated following the completion of Phase 1 construction.

Thacker Pass Expansion by Phase Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Sulfuric Acid Plant Capacity (t/d) 2,250 2,250 2,250 2,250 3,000

Nominal Design LCE Production (t/y) 40,000 40,000 40,000 40,000 -

Beneficiation circuit X X X X X

Leaching, Neutralization & CCD circuits X X X X X

Magnesium and calcium removal circuit X X X X Partial

Lithium carbonate production plant X X X X -

Construction of Phase 1 commenced in early 2023 and the Company is targeting to announce

FID in early 2025. Bechtel is the EPCM contractor for the construction of Phase 1. In Q4 2024,

the Company provided Bechtel and other major contractors with limited full notice to proceed to

de-risk the construction schedule and continue to target completion in late 2027.

Current work at Thacker Pass for Phase 1 includes excavation of the process plant (now over

75% complete), advancing detailed engineering (now over 50% complete) and awarding of

procurement packages. At the Workforce Hub, the Company’s full-service housing facility in

Winnemucca for construction workers, the site’s utility infrastructure is being built out.

CAPITAL COST ESTIMATE

Total estimated CAPEX for the development of Phases 1 through 5 for total nominal production

of 160,000 t/y of lithium carbonate is $12.4 billion. CAPEX estimates are based on Q2 2024

pricing and include a 15% contingency. CAPEX estimates include early works, mine

development, mining, the process plant, the off-site transload facility, commissioning and all

associated infrastructure.

CAPEX for Phase 2, 3, 4 and 5 is derived from Phase 1 estimates. CAPEX for Phases 2 and 3

benefits from established mine and plant infrastructure from Phase 1. CAPEX for Phases 4 and 5

include the addition of one processing plant, two sulfuric acid plants and a direct rail line to

Thacker Pass.

Thacker Pass CAPEX

Estimates

($US millions)

Phase 1 Phase 2 Phase 3 Phase

4 & 5

Additional

LOM

Mine $88 - - - -

Process & Sulfuric Acid

Plants $2,842 $2,326 $2,754 $4,074 -

Infrastructure Relocation - $2 - - $114

Rail expansion - - - $241 -

Total Development

Capital $2,930 $2,328 $2,754 $4,315 $114

Sustaining capital costs for Years 1 through 25 total $1.55 billion and for LOM total $6.92

billion. Sustaining capital costs include replacement costs for mining equipment, process plant

equipment, expansions of storage facilities and infrastructure and capital repayment to third

parties for the off-site transload terminal, mining and limestone quarry. Capital costs for Phases 2

through 5 are not included in sustaining capital costs.

Sustaining Capital Cost Estimate (US$ millions) Production Scenario

(Years 1-25)

Base Case

(85-year LOM)

Mine including equipment capital $636 $3,445

Mobile equipment $28 $93

Process plants and infrastructure $626 $3,125

Third-party capital repayment $259 $259

Total sustaining capital cost $1,549 $6,921

OPERATING COST ESTIMATE

OPEX include raw materials, labor, utilities, maintenance materials, supplies and outside

services and tailings. Reagents for the sulfuric acid plant and process plant account for

approximately 50% of total operating costs for LOM or 56% for Years 1-25. Primary reagents

include liquid sulfur, soda ash, quicklime, caustic soda, flocculant and limestone.

Summary of Thacker Pass OPEX (US$)

Production Scenario

(Years 1-25)

Base Case

(85-year LOM)

$ per tonne

Li2CO3

% of

Total

$ per tonne

Li2CO3

% of

Total

Mine $904 14% $1,767 22%

Lithium Processing & Sulfuric Acid Plants $5,013 80% $5,946 74%

General & Administrative $321 5% $326 4%

Total Operating Costs 6,238 100% $8,039 100%

MINERAL RESOURCE ESTIMATE

Thacker Pass Mineral Resource Estimate as of December 31, 2024

Category In Situ Dry

Tonnage (Mt)

Average Li

(ppm)

Lithium Carbonate

Equivalent (Mt)

Measured 560.8 2,680 8.0

Indicated 3,225.2 2,150 36.5

Total Measured & Indicated 3,786.0 2,230 44.5

Inferred 1,981.5 2,070 21.6

Notes for the December 31, 2024 Mineral Resource:

1. The independent Qualified Person who supervised the preparation of and approved

disclosure for the estimate is Benson Chow, P.G., SME-RM.

2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic

viability.

3. The Mineral Resource model has been generated using Imperial units. Metric tonnages

shown in table are conversions from the Imperial Block Model.

4. Mineral Resources are inclusive of 1,056.7 million metric tonnes (Mt) of Mineral

Reserves

5. Mineral Resources are reported using an economic break-even formula: “Operating Cost

per Resource Short Ton”/“Price per Recovered Short Ton Lithium” * 10^6 = ppm Li

Cutoff. “Operating Cost per Resource Short Ton” = US$86.76, “Price per Recovered

Short Ton Lithium” is estimated: “Lithium Carbonate Equivalent (LCE) Price” * 5.3228

* (1 – “Royalties”) * “Metallurgical Recovery”. Variables are “LCE Price” =

US$26,308/Short Ton ($29,000/tonne) Li2CO3, “GRR” = 1.75% and “Metallurgical

Recovery” = 73.5%.

6. Presented at a cutoff grade of 858 ppm Li. and a maximum ash content of 85%.

7. A mineral resource constraining pit shell has been derived from performing a pit

optimization estimation using Vulcan software and the same economic inputs as what

was used to calculate the cutoff grade.

8. The conversion factor for lithium to LCE is 5.3228.

9. Applied density for the mineralization is weighted in the block model based on clay and

ash percentages in each block and the average density for each lithology (Section 14.1.6.4

of the Technical Report).

10. Measured Mineral Resources are in blocks estimated using at least 3 drill holes and 10

samples where the closest sample during estimation is less than or equal to 900 ft.

Indicated Mineral Resources are in blocks estimated using at least 2 drill holes and 10

samples where the closest sample during estimation is less than or equal to 1,500 ft.

Inferred Mineral Resources are in blocks estimated using at least 2 drill holes and 9

samples where the closest sample during estimation is less than or equal to 2,500 ft.

11. Tonnages and grades have been rounded to accuracy levels deemed appropriate by the

QP. Summation errors due to rounding may exist.

12. Mineral Resources are presented on a 100% basis. LN indirectly owns the Project.

Lithium Americas owns a 62% interest in LN and GM owns the remaining 38%.

MINERAL RESERVE ESTIMATE

Thacker Pass Mineral Reserve Estimate as of December 31, 2024