What progress has Lithium Americas made since the commencement of construction at Thacker Pass in 2023?

We have made significant progress on-site, including extensive mobilization and site clearance. We have established a water pipeline from our off-site wells to the east, improved road security, and set up on-site offices with Bechtel and NewFields’ assistance. The progress of the final engineering phase has been ongoing since early November 2022, running parallel to our on-site mobilization.

We are also building a temporary workforce hub near Winnemucca to house up to 2,000 construction workers. In collaboration with Bechtel and the unions, we are developing training programs focusing on skilled trades for tribal members and locals.

What are the current resources at Thacker Pass, and could you provide some insights into the updated feasibility study?

The Thacker Pass project currently holds a total M&I estimate of approximately 19 million t of lithium carbonate equivalent (LCE). We plan to release another resource update by the end of 2023, which will significantly increase these figures. Our exploration drilling activities to the east and west of the initial phase one area have consistently provided encouraging results, reinforcing our confidence in the project's resource potential. The updated resource estimates expected for this year will likely be in the mid to upper 20 million-t range in terms of LCE. This would position Thacker Pass as one of the largest reported LCE resources in the world.

Our feasibility study was updated in 2023, and presents a current Capex estimate of US$2.3 billion.

Could you explain the cost-effectiveness and reduced carbon footprint associated with sedimentary clay deposits?

Our chemical process recycles 85% of water and does not require extensive evaporation ponds, minimizing freshwater input and land use. Furthermore, the operation is simplified by eliminating the need for absorbents or ion exchange processes. The use of renewable or self-generated power can further decrease the carbon impact.

Can you elaborate on the off-take agreement with GM?

GM adopted a unique approach, essentially leveraging its balance sheet. They initially invested US$320 million in common shares of our company and secured a board seat within the newly separated entity. This was the first tranche of their investment. The second tranche, contingent on announcing a conditional loan guarantee, amounts to an additional US$330 million. These funds will be allocated to the capital required for the project's first phase. In return, GM secured a 10-year off-take agreement with an option to extend it another 5 years.

This agreement includes a pricing mechanism based on market index pricing, with an effective discount that increases as lithium prices rise. Additionally, we are working together on GM's future battery chemistry toolkit, where carbonate plays a central role, particularly with the shift toward lithium iron phosphate-based chemistries.

How will the DoE loan contribute to the growth and innovation of Thacker Pass?

We are in advanced discussions with the government to secure a loan from the Department of Energy. The US government's support has extended across various sectors, including batteries, recycling, and hydrogen. They are nurturing companies like ours to foster the industry's growth over the next five to ten years. Such support is evident in Redwood Materials' US$2 billion loan and Ford's US$9 billion loan.

What was the impetus behind the spin-out of the Argentinian projects?

We face a significant challenge in securing the necessary capital for our three projects. With one project operational, a second under development, and a greenfield asset in Argentina, we require around US$4 billion. This situation presents board-level challenges regarding capital deployment, particularly for the Argentina project.

How do misconceptions impact mining projects?

The issue extends beyond mining and mineral processing to include broader permitting challenges. Often, non-local groups or individuals attempt to mobilize locals to further their own agendas. The main challenge is to foster constructive dialogue and collaboration, focusing on progress. It is crucial to bridge the gap between those opposed to all forms of development and those seeking advancement. Engaging genuinely with the local community is essential, rather than allowing national or international groups to influence local sentiment.