Proactive Investors - Lithium Americas Corp (TSX:TSX:LAC, NYSE:LAC) has announced the start of construction at its 100%-owned Thacker Pass lithium project in Nevada, following the receipt of notice to proceed from the Bureau of Land Management (BLM).
The lithium projects developer said Thacker Pass is targeting 80,000 tonnes per annum (tpa) of battery-quality lithium carbonate (Li2CO3) production capacity, in two phases of 40,000 tpa, with Phase 1 production expected to begin in the second half of 2026.
“Starting construction is a momentous milestone for Thacker Pass and one we have been working towards for over a decade,” Lithium Americas CEO Jonathan Evans said in a statement.
“We are excited about the prospect of generating economic growth in Northern Nevada and playing a major role in the domestic lithium supply chain for electric vehicles,” he added.
Lithium Americas noted that initial construction includes site preparation, geotechnical drilling, water pipeline development and associated infrastructure, while contracts for major earthworks have been awarded with activities expected to begin in the second half of 2023.
“The start of construction is, along with the two successive court victories and progress towards funding, another de-risking box ticked along the path to project completion that should be accompanied by increasing market recognition of the project's value in the share price, in our view,” Stifel GMP analysts wrote in a note published on Thursday.
They added that a loan from the Department of Energy could eventually fund up to 75% of the project.
The Stifel analysts have estimated the net asset value (NAV) for Thacker Pass, the largest known lithium resource in the US, at US$1.9 billion, or US$13.62 per LAC share.
As well, they said other near-term catalysts for Lithium Americas include first/commercial production at Cauchari Olaroz, Cauchari Phase II details, and the separation of the business into South American and North American units, expected later this year.
Stifel currently has a ‘Buy’ rating on Lithium Americas stock with a target price of US$22.93 per share.