Final Investment Decision Marks a Major Milestone for One of the World’s Largest Lithium Projects
Deterra Royalties (ASX: DRR) has welcomed the latest developments at the Thacker Pass Lithium Project in Nevada, USA, where operator Lithium Americas Corporation (LAC) has confirmed a Final Investment Decision (FID) for Phase 1, fully funding the project’s first stage of development.
Key Milestones: Thacker Pass Moves Forward
LAC’s announcement follows the closing of a US$250 million investment from Orion Resource Partners, with additional contributions of US$192 million from LAC and US$100 million from General Motors (GM). These investments satisfy all remaining funding conditions under the previously announced US$2.26 billion U.S. Department of Energy (DOE) loan, clearing the path for construction.
With this, the Thacker Pass joint venture (JV) partners – LAC and GM – have reached Final Investment Decision for Phase 1, which is expected to be completed by late 2027.
A World-Class Lithium Asset with Strong Economics
Thacker Pass is home to the largest measured lithium resource in the world, with a Proven and Probable reserve of 14.3 million tonnes of lithium carbonate equivalent (LCE). The long-life, low-cost project is designed to ramp up to 160,000 tonnes of battery-grade LCE per year across five phases, with Phase 1 targeting 40,000 tonnes annually.
The mine’s 85-year life and expected C1 operating costs of US$6,238/tonne LCE position it among the world’s lowest-cost lithium producers.
Deterra’s Royalty Position
Deterra holds a 4.8% gross revenue royalty over Thacker Pass, which will reduce to 1.05% after an expected US$13.2 million partial buyback payment.
Julian Andrews, Deterra’s Managing Director & CEO, welcomed the progress:
“Confirmation of the Final Investment Decision puts Thacker Pass firmly on track to become a globally significant lithium producer. This update highlights the quality of the project, as evidenced by the backing of the U.S. Department of Energy, General Motors, and Orion Resource Partners.”
Deterra sees Thacker Pass as an ideal complement to its flagship royalty over BHP’s Mining Area C, further strengthening its portfolio of long-life, low-cost, Tier 1 mining assets.
