Deterra Royalties (ASX:DRR) has reported significant progress at the Thacker Pass Lithium Project in Nevada, following a recent update from project operator Lithium Americas Corporation (LAC).
Deterra holds a 4.8 per cent gross revenue royalty over Thacker Pass, which will reduce to 1.05 per cent after the expected exercise of a partial royalty buyback, resulting in a US$13.2 million payment to Deterra.
Major construction activities are now underway at Thacker Pass.
Earthworks are nearing completion, and the first permanent concrete was placed in the processing plant area in early May 2025.
The project is on track for its next milestone, with the first steel installation targeted for September 2025.
During the first quarter of 2025, US$78.2 million in construction and project-related costs were capitalised, and the joint venture partners — LAC and General Motors Holdings LLC — have contributed a combined US$291.6 million in cash following the final investment decision (FID) on April 1, 2025.
LAC expects to make the first draw on a previously announced US$2.26 billion loan from the U.S. Department of Energy in the third quarter of 2025, further securing the project’s financial footing.
Completion of Phase 1 is targeted for late 2027.
Thacker Pass is recognised as the world’s largest measured lithium reserve and resource, with a NI 43-101 (non-JORC) Proven and Probable mineral reserve estimate of 14.3 million tonnes lithium carbonate equivalent (LCE) and a Measured and Indicated resource estimate of 44.5 million tonnes LCE.
LAC aims to produce 160,000 tonnes of battery-quality lithium carbonate per year across five phases, with Phase 1 targeting 40,000 tonnes annually.
The project outlines an 85-year mine life, with optimised production for the first 25 years at C1 operating costs of $6,238 per tonne LCE, positioning Thacker Pass as one of the lowest-cost producers globally.
Julian Andrews, Managing Director and Chief Executive Officer of Deterra, commented on the project’s momentum: “Since acquisition of the Thacker Pass royalty, we’ve seen significant progress at the Project including completion of the construction funding package, a substantial increase in the planned production profile and mine life, a positive final investment decision, and now, key developments in Project construction.
“We are very pleased with the continued progress of Deterra’s portfolio of royalties and streams and look forward to sharing future updates.”
The Thacker Pass project is viewed as a cornerstone for the US battery supply chain, with its initial production capacity expected to supply enough lithium carbonate for up to 800,000 electric vehicles annually, representing a significant step toward reducing American reliance on imported critical minerals.
