Lithium Americas Thacker Pass project update presented at MINEXCHANGE 2023

Thacker Pass is the largest known measured and indicated resource in the United States and the next large-scale lithium mine. The SME Industrial Minerals & Aggregates Division Luncheon at the MINEXCHANGE 2023 SME Annual Conference & Expo in Denver, CO featured an update on the status of the Thacker Pass project presented by Tim Crowley, vice president of government and community relations, Lithium Nevada Corp. The Thacker Pass Lithium Mine is a lithium clay mining development project in Humboldt County, NV. It is the largest known lithium deposit in the United States as well as one of the largest in the world. Lithium Americas has been collecting environmental, land and cultural data at the mine for more than 10 years toward the development of an environmental impact statement and for the permitting process. In January 2021, Lithium Americas received a record of decision from the U.S. Department of the Interior Bureau of Land Management and has now received all the permits required to commence construction, which is expected to begin imminently. “I think we’re done with the lawsuits,” Crowley said, in regard to the long process toward receiving the necessary mining permits. The project is located within an extinct 40 × 30 km (25 × 19 mile) super volcano named McDermitt Caldera that was formed approximately 16.3 million years ago as part of a hotspot underneath the Yellowstone Plateau. Following an initial eruption and concurrent collapse of the McDermitt Caldera, a large lake formed in the caldera basin. The lake was enriched with lithium, and the result is an accumulation of lithium-rich clays. “Lithium demand is going through the roof,” said Crowley. He explained that there is a need for large-scale batteries for storage in electric vehicles and that the supply of critical minerals for their development is not going to keep up with demand, at least not in the near future. “It is a special clay deposit, shallow and soft. It is a dream come true. The kicker is its high concentration,” said Crowley. He added that the deepest well of the mine is 137 m (450 ft) deep, and there is no need to go deeper than that to access the deposit. This is one way the company plans to minimize the environmental impact of the project, because it is in a shallow pit and is designed for active reclamation. Tim Crowley, vice president of government and community relations, Lithium Nevada Corp. was the featured speaker at the sold-out 2023 Industrial Minerals & Aggregates Division Luncheon. Lithium Americas said it has gone beyond regulatory requirements as it establishes a lowcarbon footprint for the project and low water consumption, drawing less than 2 percent of the total groundwater pumped in Humboldt County. The project is designed for a high recycle and water reuse rate (80 percent) in a closed-loop, zero-liquid-discharge facility. The Thacker Pass Project is located within an extinct 40 × 30 km (25 × 19 mile) supervolcano named Mc- Dermitt Caldera, which was formed approximately 16.3 million years ago as part of a hotspot currently underneath the Yellowstone Plateau. Partnership announced with GM Crowley discussed a January 2023 partnership agreement Lithium Americas has come to with General Motors (GM) in which GM has committed to a $650 million equity investment to jointly develop Thacker Pass, representing the largest-ever investment by an automaker in battery raw materials. The agreement is designed to strengthen the U.S. domestic battery supply chain and onshore the mining of domestic lithium. GM’s investment makes it Lithium Americas largest shareholder. The binding supply agreement between the two companies ensures 100 percent of the lithium carbonate supply from Thacker Pass’ phase 1 production goes to GM exclusively for 10 years with an option for five additional years. The long-term vision is to build lithium capacity to supply more than 40 million electric vehicles. Lithium carbonate from Thacker Pass will be used in GM’s Ultium battery cells. Lithium is a key material in lithium-ion batteries as the material can withstand repeated charging and discharging as well as fast charging. GM believes that when Thacker Pass is operational in 2026, it could support annual production of up to 1 million electric vehicles (EVs), create 1,000 jobs in construction and 500 in operations. GM has also committed to building three manufacturing plants to process lithium and cathodes. It anticipates future production will increasingly draw from domestic resources like the site in Nevada. The company wants direct sourcing of critical EV raw materials and components from suppliers in North America and countries with free-trade agreements to help make supply chains more secure, manage costs and create jobs. ESG in practice Crowley said that throughout the permitting process, Lithium Americas put a lot of attention on the cultural aspect of the area as well as on the obsidian deposit, tools and evidence throughout the site of Native American activity. A civilian conservation core and pioneering work has been done in the area since the 1930s. “We are working hard to get this project done right and trying to bring down carbon emissions by mining lithium,” he said. The company has been working with Sawtooth Mining and local tribal communities on these efforts. Lithium Americas has established a community benefits agreement with the Fort McDermitt Paiute and Shoshone Tribe. During the spring of 2022, Lithium Americas facilitated cultural monitor training, allowing for 11 tribe members to actively participate in archeological work at the site. Lithium Americas is also working with the local community to fund a new K-8 school in Orovada, NV. The company has created employment opportunities in northern Nevada with direct employment of 1,000 jobs during construction and 500 permanent jobs. The wages for these jobs are approximately twice the state average. Feasibility study results published in January 2023 target a total capacity of 72.5 kt/a (80,000 stpy) of lithium carbonate in two phases. The pit wall opening migrates west to east. Bechtel Corp. is the engineering, procurement and construction management contractor for phase 1 of the project, and detailed engineering is underway.

Lithium Americas Thacker Pass project update presented at MINEXCHANGE 2023

Authored by:
Nancy Profera

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