Thacker Pass construction begins as Lithium Americas targets U.S. EV lithium supply gap

What makes the Thacker Pass project so critical for America’s electric vehicle future?

Lithium Americas Corporation has officially launched construction of its Thacker Pass lithium project in Humboldt County, Nevada—an event that marks a decisive milestone in the North American energy transition. The Canadian mining company, which has spent over a decade preparing the site, confirmed on March 4, 2023, that work had begun following receipt of the notice to proceed from the U.S. Bureau of Land Management (BLM).

With global lithium demand surging, the Thacker Pass project has drawn national attention for its potential to reshape the United States’ domestic battery supply chain. Once fully operational, the lithium mine is expected to produce 80,000 tonnes per annum (tpa) of battery-grade lithium carbonate (Li₂CO₃), making it one of the largest sources of lithium on the continent.

The first phase of construction will target a capacity of 40,000 tpa, with commercial production scheduled to commence in the second half of 2026.

Lithium Americas President and CEO Jonathan Evans emphasized the project’s strategic importance, stating that “starting construction is a momentous milestone for Thacker Pass and one we have been working towards for over a decade.” He further noted the project’s promise to spur economic development in Northern Nevada and contribute to securing the electric vehicle supply chain within U.S. borders.

How is the Thacker Pass lithium mine being developed and who are the major contractors?

Construction at Thacker Pass is proceeding in phases, with initial works including site preparation, geotechnical drilling, and infrastructure development such as water pipelines. Major earthworks are scheduled to begin in the second half of 2023, setting the foundation for chemical processing and material refinement facilities that will later support lithium carbonate production.

Engineering, procurement, and construction management (EPCM) for Phase 1 has been awarded to Bechtel Corporation, one of the largest and most experienced engineering firms in the United States. Bechtel’s deep expertise in large-scale infrastructure is expected to help mitigate risk and accelerate the project timeline.

In parallel, Aquatech International, a Pennsylvania-based water treatment and chemical processing firm, has been contracted to develop the magnesium sulfate and lithium carbonate facilities. These components are essential for converting raw lithium-bearing clay into battery-quality lithium compounds.

EXP Global, a Canadian engineering firm, will provide design and commissioning support for the sulfuric acid plant, a core component in lithium extraction from sedimentary deposits. For the associated heat recovery systems, Lithium Americas has brought in MECS, a DuPont-affiliated technology company known for high-efficiency sulfuric acid processing systems.

Each partner brings a specific set of technical capabilities critical to developing the integrated processing infrastructure required for lithium carbonate production at Thacker Pass.

Why is General Motors backing Lithium Americas with a $650 million investment?

A major catalyst behind the Thacker Pass construction announcement is the $650 million investment commitment from General Motors, disclosed in January 2023. The automaker’s strategic backing offers more than just financial capital—it also validates Thacker Pass as a future anchor of GM’s electric vehicle (EV) supply chain.

As part of the deal, General Motors secures exclusive rights to the first phase of lithium production from the project, which aligns with the automotive giant’s aggressive goal to phase out internal combustion engine (ICE) vehicles and ramp up EV production by the end of the decade.

The agreement positions General Motors not just as a buyer but as a vertically integrated stakeholder in the lithium supply chain. In a statement made during the funding announcement, executives from both companies framed the investment as a decisive step toward domestic raw material independence amid rising geopolitical tensions and supply chain vulnerabilities.

The capital will be disbursed in two tranches, with the first tranche of $320 million delivered as an equity investment to fund construction. The second tranche of $330 million will be structured as debt financing to support Phase 1 development costs.

For Lithium Americas, this capital infusion significantly de-risks construction financing and offers critical liquidity during a period of elevated materials inflation and engineering cost escalations.

What makes Thacker Pass geologically and strategically unique among U.S. lithium assets?

The Thacker Pass deposit is located within the McDermitt Caldera, a geologic formation rich in lithium-bearing sedimentary claystone. Unlike traditional spodumene hard rock lithium mines or brine-based operations, Thacker Pass is one of the most significant known sedimentary lithium deposits in North America.

According to feasibility studies available by March 2023, the project hosts an estimated 13.7 million tonnes of lithium carbonate equivalent (LCE) in measured and indicated resources. This volume places it among the largest lithium resources in the Western Hemisphere.

Strategically, its location within Nevada offers proximity to existing infrastructure, a skilled workforce, and downstream battery manufacturing hubs in California, Arizona, and the Midwest. This geographic advantage reduces transportation costs and carbon footprint, making Thacker Pass one of the most viable candidates for supporting a U.S.-based lithium-to-battery ecosystem.

Moreover, its development aligns closely with policy directives under the U.S. Inflation Reduction Act and Bipartisan Infrastructure Law, which prioritize domestic sourcing of critical minerals to qualify for federal EV tax incentives.

How is Lithium Americas positioning itself beyond Thacker Pass?

While Thacker Pass is currently the most advanced project within its North American portfolio, Lithium Americas is also actively progressing its interests in Argentina. The Canadian mining company is developing two high-grade lithium brine projects in the Lithium Triangle—Caucharí-Olaroz and Pastos Grandes.

Caucharí-Olaroz, located in Jujuy Province, is being developed in partnership with China-based Ganfeng Lithium and has already entered the commissioning phase. It is expected to initially produce 40,000 tpa of lithium carbonate, offering a diversified revenue stream and geographic hedge for Lithium Americas.

Pastos Grandes, acquired through the Millennial Lithium transaction in 2022, adds further scale to the company’s South American strategy, giving it access to a broader base of brine resources amid strong global lithium demand.

Together, these projects complement Thacker Pass by giving Lithium Americas exposure to both sedimentary and brine-based lithium resources—a rare combination in the sector.

What are analysts saying about the lithium market outlook and Thacker Pass’s long-term potential?

Analysts covering the lithium sector have consistently cited tight supply-demand fundamentals as a major growth driver through the end of the decade. Benchmark Mineral Intelligence, Wood Mackenzie, and S&P Global all projected significant supply deficits beginning in 2024, particularly as automakers accelerate EV rollouts and battery gigafactory buildouts intensify.

Against this backdrop, projects like Thacker Pass are viewed as essential to rebalancing the market. Equity analysts have praised Lithium Americas for securing major strategic partners like General Motors and advancing construction on schedule, noting that de-risked U.S. lithium assets remain scarce.

While challenges remain—including permitting hurdles, environmental litigation, and construction execution risk—market watchers generally view Thacker Pass as one of the most pivotal upstream assets for North America’s clean energy transition.

Can Thacker Pass deliver on its promise to anchor a domestic battery metal supply chain?

Lithium Americas’ commencement of construction at Thacker Pass marks more than just another mine breaking ground. It signals a structural shift toward domestic mineral sovereignty in the United States—a necessary precondition for the country’s electric vehicle ambitions and industrial competitiveness in a net-zero economy.

With a strong capital partner in General Motors, a world-class EPCM team led by Bechtel, and a resource base capable of powering millions of EVs, the Thacker Pass project is well-positioned to become a keystone of U.S. energy resilience.

The next milestones—earthworks in late 2023 and first production by 2026—will be closely watched by policymakers, automakers, and investors alike. If successful, Thacker Pass could become the archetype for how North America secures its place in the global battery supply chain.