Deterra Royalties Limited (ASX:DRR) has announced a significant update regarding the Thacker Pass Lithium Project in Nevada, USA, operated by Lithium Americas Corporation (LAC).
The project, in which Deterra holds a 4.8 per cent gross revenue royalty, has been confirmed as the world’s largest measured lithium reserve and resource.
The updated mineral estimates for Thacker Pass are impressive, with a Non-JORC Proven and Probable mineral reserve of 14.3 million tonnes of lithium carbonate equivalent (LCE) and a Non-JORC Measured and Indicated mineral resource of 44.5 million tonnes LCE.
LAC has unveiled an ambitious expansion plan, aiming to double the project’s production capacity to 160,000 tonnes per year of battery-quality lithium carbonate.
This will be achieved through four phases, each adding 40,000 tonnes per annum.
The project’s economics have also seen significant improvements.
The life-of-mine has more than doubled from 40 years to 85 years, with an optimised production scenario for the first 25 years.
The C1 operating costs are projected at US$6,238 per tonne, positioning Thacker Pass as one of the most cost-competitive lithium producers globally.
Julian Andrews, Managing Director and CEO of Deterra, expressed enthusiasm about the update, highlighting the benefits of the royalty model.
He stated: “For no additional capital outlay by Deterra, our economic interest has increased substantially as Thacker Pass has grown to have the largest global lithium resource and reserve, doubled the planned production profile, and increased the life-of-mine to 85 years while maintaining an exceptionally competitive operating cost profile.”
The project’s strategic importance is further underscored by recent financial developments, including a US$2.3 billion loan from the U.S. Department of Energy and a US$625 million joint venture investment by General Motors.
LAC has outlined a timeline for the project’s development, with key milestones including a final investment decision for Phase 1 in early 2025, commencement of concrete production in Q2 2025, process plant commissioning in Q2 2026, and first production expected in Q4 2027.
As Lithium Americas progresses towards becoming one of the world’s largest lithium producers, Deterra Royalties stands to benefit significantly from its royalty interest in this expanding, world-class lithium project.
