Press release·03/28/2025 16:10:54

Overview of Lithium Americas’ Financial Performance

Lithium Americas Corp. (the “Company” or “New LAC”) is a Canadian company focused on developing the Thacker Pass lithium project in Nevada, USA. In 2024, the Company made significant progress in securing financing and advancing the construction of Thacker Pass, which is expected to begin production in late 2027.

As of December 31, 2024, the Company had $594.2 million in cash, cash equivalents and restricted cash, a substantial increase from $195.8 million at the end of 2023. This strong cash position was bolstered by several key financing deals completed in 2024, including:

• A $2.26 billion loan from the U.S. Department of Energy’s Loan Programs Office to finance the construction of the Phase 1 processing facilities at Thacker Pass.
• A $625 million investment from General Motors (GM) to acquire a 38% stake in the Thacker Pass project.
• A $250 million strategic investment from Orion Resource Partners, including $195 million in convertible notes and a $25 million production payment agreement.
• A $275 million public offering of common shares.

These financing arrangements have put the Company in a strong position to fund the development and construction of Phase 1 of Thacker Pass. The project is now fully financed through a combination of debt, equity and strategic partnerships.

Revenue and Profit Trends

Lithium Americas is still in the development stage and has not yet begun generating revenue from operations. The Company reported a net loss of $42.6 million in 2024, compared to a net loss of $5.1 million in 2023.

The increase in net loss was primarily due to higher general and administrative expenses, transaction costs related to the financing deals, and losses on the Company’s investments in other lithium and battery technology companies. Exploration expenditures decreased as more costs were capitalized as part of the Thacker Pass construction.

While the Company is not yet profitable, the significant financing secured in 2024 puts it in a strong position to advance the Thacker Pass project towards production and future revenue generation. The Company expects to begin generating revenue once Thacker Pass reaches commercial production, which is targeted for late 2027.

Strengths and Weaknesses

Strengths:

• Secured substantial financing for Thacker Pass development, including a major loan from the U.S. Department of Energy and strategic investments from GM and Orion Resource Partners.
• Established a joint venture with GM, which provides both funding and an offtake agreement for lithium production.
• Strong cash position of $594.2 million as of the end of 2024, providing ample liquidity to fund ongoing construction and development activities.
• Experienced management team with a track record of advancing lithium projects.

Weaknesses:

• Still in the development stage, with no revenue generated from operations yet.
• Significant net losses in 2024 and 2023 as the Company incurs expenses to advance the Thacker Pass project.
• Restrictions on transferring assets from the Thacker Pass subsidiary to the parent company due to the DOE loan, which could limit financial flexibility.
• Exposure to commodity price risk, as lithium prices can be volatile and impact the project’s economics.

Outlook and Future Prospects

Lithium Americas is well-positioned for the future as it continues to advance the Thacker Pass project towards production. The substantial financing secured in 2024 has provided the Company with the resources needed to fund the construction and development of Phase 1 of the project.

The joint venture with GM is a significant strategic partnership that not only provides funding but also secures an offtake agreement for a portion of Thacker Pass’ future lithium production. This helps to de-risk the project and provides a reliable customer for the Company’s future output.

The DOE loan, with its favorable terms and long-term maturity, further strengthens the Company’s financial position and ability to execute on its development plans. The additional investment from Orion Resource Partners diversifies the Company’s funding sources and provides additional flexibility.

While the Company is still in the development stage and not yet generating revenue, the progress made in 2024 has put Lithium Americas on a solid path towards achieving commercial production at Thacker Pass in late 2027. The strong cash position and fully-funded status of the project provide confidence in the Company’s ability to successfully execute its plans and capitalize on the growing demand for lithium, a critical mineral for the transition to electric vehicles and energy storage.

However, the Company does face some risks, including commodity price volatility, restrictions on asset transfers due to the DOE loan, and the inherent challenges of developing a large-scale mining project. Ongoing monitoring and management of these risks will be crucial as the Company moves forward.

Overall, Lithium Americas has demonstrated its ability to secure the necessary financing and partnerships to advance the Thacker Pass project. With construction underway and a clear path to production, the Company appears well-positioned to capitalize on the growing lithium market in the coming years.