Is Lithium Americas a Buy? Thacker Pass Advances Amid Financial Pressures

Lithium Americas Corp. (LAC) is moving forward with confidence at its Thacker Pass project. The company secured strong funding and began major construction in early 2025. The company invested heavily in development during 2025, showing a clear commitment to long-term growth. Despite posting a net loss, it maintains solid liquidity. This article provides a fundamental and technical analysis of Lithium Americas, examining its current projects, future potential, and the next direction of the stock price.

Lithium Americas Advances Thacker Pass with Strong Progress

Lithium Americas shows substantial progress at its Thacker Pass project despite posting a net loss in its Q1 2025 earnings report. The company had $446.9 million in cash and restricted cash as of March 31, 2025, providing solid liquidity. It spent $78.2 million in capitalised construction and project costs during the quarter, highlighting aggressive investment in development.

This is also proved from the chart below, which shows the Lithium Americas’ total quarterly expenses. The sharp spikes and drops in total expenses suggest that Lithium Americas is operating in non-steady-state, project-driven cycles. These fluctuations are typical for companies transitioning from exploration to construction, with Thacker Pass underway.

Strategic Financing Secures Phase 1 Development

One of the most notable developments is the $250 million Orion investment that closed in April 2025. This ensures full financing for Phase 1 of Thacker Pass. The final investment decision with General Motors Company (GM) contributed additional funding, with GM and Lithium Americas injecting $100 million and $191.6 million into their joint venture.

From an operational point of view, the company has begun major construction at Thacker Pass. Permanent concrete was placed in early May, and structural steel fabrication started in April. These milestones support the company’s timeline to complete Phase 1 by late 2027. Moreover, the engineering work reached over 60% completion by the end of Q1 and is expected to exceed 90% by year-end, reducing schedule and cost risks.

Further construction progress includes the installation of modular housing for workers and the advancement of long-lead equipment manufacturing. The workforce hub in Winnemucca is expected to house workers by 2025. In addition, Lithium Americas has proposed developing Western Quarry to secure a local and cost-effective limestone supply, a critical input in lithium carbonate production.

Short-Term Financial Pressures Amid Long-Term Growth

Despite operational momentum, the company reported a net loss in Q1. The net loss for Q1 2025 was -$10.70 million, as shown in the chart below.

This was mainly due to higher general and administrative expenses. The chart below shows that the general and administrative expenses for Q1 2025 were $6.505 million.

The costs increased due to the company’s transition to domestic filer status, DOE loan compliance, and expenses related to the Orion deal. These administrative burdens are likely short-term but necessary as the company scales.

The chart below shows the total assets for Lithium Americas. The assets have been increasing since 2023, but declined in Q1 2025 to $1.018 billion. This decline was due to cash usage for transaction and operational payables.

However, with significant financing secured and construction underway, Lithium Americas remains on track to deliver Phase 1 of Thacker Pass. The financial performance reflects a strategic transition from early-stage development to full-scale construction, supported by strong partners and long-term funding commitments.

Lithium Americas Bearish Trend Nears Key Support Levels

Lithium Americas has been under intense bearish pressure over the past couple of years. The monthly chart below shows that the stock has traded consistently below the long-term trend line in the $5 to $6 area. Historically, the stock showed strong bullish momentum from 2010 to 2018.

What Drove the 2021 Spike and 2022–2023 Collapse?

During this period, it formed a large rounding bottom and broke out above the $5 level in 2020. Following that breakout, the stock surged to an all-time high of $24.82 in November 2021 before entering a prolonged correction through 2025.

This sharp rise and subsequent decline appear to reflect a speculative spike in lithium prices. This price surge in 2021 was due to soaring lithium demand, strong EV market growth, and investor excitement over Thacker Pass.

The company also announced major partnerships and project milestones, which boosted confidence. Speculation drove the stock to a record high of $24.82 in November 2021. However, in 2022 and 2023, the stock dropped sharply as lithium prices cooled and market sentiment shifted.

Rising interest rates, inflation fears, and delays in project timelines added pressure. Investors also reacted to global trade tensions and tighter financial conditions, leading to heavy sell-offs and a prolonged downtrend.

Currently, the stock shows continued weakness after failing to break above the October 2024 high of $5.20. A bearish hammer candle for July 2025 indicates the downward trend. This formation suggests that selling pressure is increasing. However, the stock now approaches a long-term support zone, where a bottom may likely form in a few weeks or months.

Key Support Zones Could Signal a Bottom for Lithium Americas

The weekly chart shows that Lithium Americas’ stock surged in 2021, then formed a bearish pattern in 2022. It broke below a triangle formation and reached a bottom in 2024. Recently, the price has been consolidating within a descending channel, showing weakness toward the $2.50 area.

The chart also highlights long-term pivotal support between the $1–$2 range. This zone aligns with strong historical support during the 2008 and 2019 bottoms. Therefore, any correction into this $1–$2 range may offer an outstanding opportunity to accumulate Lithium Americas stock for future upside potential.

A zoomed-out view of the weekly chart shows the formation of a descending channel starting from the October 2024 high. The stock price has been trading negatively ahead of the Q2 2025 earnings release. As Lithium Americas reports its Q2 earnings, the stock finds strong support near the $2.90 area, which aligns with the lower boundary of the descending channel.

Any correction in this region may present a buying opportunity for investors. Moreover, if the stock continues to decline toward the $1 to $2 range, investors can consider adding more positions at those long-term support levels.

Risk Factors for Lithium Americas

Lithium Americas faces execution risk at Thacker Pass. While Phase 1 is fully funded, delays or cost overruns could erode investor confidence. Moreover, complex construction phases, permitting hurdles, or supply chain disruptions may extend timelines and increase expenses.

On the other hand, the short-term financial pressure adds to the challenge. The company posted a net loss of $10.7 million in Q1 2025, driven by rising administrative costs and DOE loan compliance. The continued spending without revenue could force reliance on future financing or dilute shareholder value.

Moreover, the external factors also raise concern. Weak lithium prices, uncertainty in interest rates, and global trade tensions may weigh on sentiment. Tariff threats could impact equipment sourcing and increase project costs. If macroeconomic conditions worsen, Lithium Americas may struggle to maintain its current momentum.

Is Lithium Americas a Buy?

Lithium Americas is making solid progress at Thacker Pass. The company has secured full funding for Phase 1 and achieved major construction milestones. Despite posting a net loss, its position remains strong. Engineering and procurement are on track, reducing long-term risk. Strategic partners like General Motors and Orion strengthen their growth outlook.

However, administrative costs are rising, and the company still generates no revenue. The volatile lithium prices and trade tensions add further pressure to its growth outlook. Despite these risks, the stock is currently trading near long-term pivotal levels that offer strong consideration for long-term investment. Investors may consider buying the stock within the $3 to $1 range and look for long-term growth potential.