Environmental, Sustainability,
Governance and Safety (ESG-S)

Climate: Energy and GHG Emissions

In 2022, we baselined our expected operational Scope 1 (direct) and Scope 2 (indirect) greenhouse gas (GHG) emissions intensity for Caucharí-Olaroz and Thacker Pass. We are currently working on determining the expected Scope 3 upstream and downstream carbon intensity for both projects.

Thacker Pass Scope 1 and Scope 2 carbon emission intensity per tonne of lithium carbonate produced is expected to be approximately 40% less than mining peers, when including processing.

Cauchari-Oloarz expected Scope 1 and Scope 2 is inline with other operating lithium brine operations in South America.

The teams are working to identify opportunities to further reduce expected carbon intensity.

Building on our 2017 partnership with the University of Nevada, Reno (UNR) to establish an initiative for the restoration and protection of great basin sagebrush by founding the Great Basin Sagebrush Restoration Fund, in 2021 we partnered with UNR’s Department of Mining and Metallurgical Engineering at the Mackay School of Earth Sciences and Engineering to assess the socioeconomic and environmental footprint for the Thacker Pass project. Professor Ehsan Vahidi, Ph.D. will run the two-year program, which will include developing a lifecycle inventory database, quantifying the environmental performance of lithium production from claystone ore and analyzing the socioeconomic impacts from activity at Thacker Pass along with the impacts of other lithium production facilities around the world.

Community Engagement

Building strong relationships with local communities everywhere we operate and creating shared value is a priority for Lithium Americas.
 

Thacker Pass

In October 2022, we jointly signed a Community Benefits Agreement (“CBA”) with the Fort McDermitt Paiute and Shoshone Tribe (“Tribe”), the closest Native American community to the project site, located approximately 40 miles from Thacker Pass.

Building on several years of engagement and relationship-building between the Company and the Tribe, the CBA establishes a framework for continued collaboration and defines long-term benefits for the Tribe. The CBA provides the Tribe additional training and employment opportunities, and support for cultural education and preservation. Furthermore, the Company has agreed to build a community center for the Tribe that includes a daycare, preschool, playground, cultural facility and communal greenhouse to support reclamation efforts and provide income for the Tribe.

Thacker Pass is expected to provide employment for over 1,000 workers during construction and approximately 500 permanent workers during operations. We are committed to employing Nevadans and working with Nevada service providers to the greatest extent possible.

In anticipation of construction and operations, we are working with the Tribe to provide skills training. In October 2022, additional heavy equipment operator training for Tribe members took place on tribal lands. In late 2021 and early 2022, the Company arranged for specialized cultural monitor training for Tribe members, resulting in 11 members securing work with Far Western between April to mid-July 2022 to complete the cultural work at Thacker Pass.

We have also partnered with trade schools and local community colleges such as Great Basin College to offer training programs and workforce development initiatives. One such initiative is the BuildNV Core Construction Training Program, which provides 80 hours of training in basic construction skills.

Caucharí-Olaroz

At Caucharí-Olaroz, a Social Responsibility Plan was developed to incorporate best practices to minimize the impact of its operations on local communities and the environment. The company entered into agreements that aim to promote social development through high quality job creation, training, access to medical assistance and other infrastructure with aboriginal communities located in the vicinity of Caucharí-Olaroz.

As of October 2022, the seven local communities in the vicinity of the project have approved increasing the scope of the project to accommodate a proposed expansion.

Caucharí-Olaroz has partnered with the National University of Jujuy to implement and offer a training program covering a variety of courses such as math and sciences, safety, environmental, applied technologies and operational courses to provide training opportunities to local and indigenous people to prepare them for potential future employment with the company.

Pastos Grandes

The Pastos Grandes team has very strong relations with the local community, where the majority of the project employees reside. The company actively participates in community events, civic development opportunities and works closely with regulators and regional government.

The team is currently working with the community on land planning to determine the best options for the project.

In 2019, the community’s first water well was constructed and in 2021, a Santa Rosa Integration and Business Center, covering an area of 1,128,80 m², which includes areas for company use, recreational use by the community and commercial use for the residents, was completed.

Global Diversity, Equity and Inclusion

With global projects advancing to production, Lithium Americas’ growing workforce reflects the diversity of the communities in which we will be operating. Our people are our most important asset. We value diversity, equity and inclusion, and we recognize the importance of cultivating an inclusive work environment focused on a sense of belonging. Our commitment to advancing diversity initiatives extends beyond the workplace with external initiatives and partnerships. We have joined the coalition for CEO action on diversity and inclusion, the largest CEO-driven business commitment to drive measurable action and meaningful change in advancing diversity, equity and inclusion in the workplace.  To learn more about the call-to-action visit Home | CEO Action for Diversity & Inclusion

Biodiversity

Protecting local species, cultures and natural ecosystems by reducing impact on biodiversity is a priority for Lithium America.

Thacker Pass

Thacker Pass has been intentionally located south of the Montana Mountains to avoid direct impacts on sensitive species. We have invested over $1 million in environmental projects that included restoration of sage grouse habitat, eagle mitigation and riparian stream rehabilitation.

Thacker Pass’s reclamation plan, which has been approved by regulators, includes a planned topology that maps out enhanced protection for local biodiversity. This topology was developed following intense study of local biodiversity to understand the context, including baseline studies on the sage grouse, eagles, trout and other species. 

Over the past 10 years, we have carefully studied the ecosystem that surrounds Thacker Pass, and have made several key design decisions based on biodiversity considerations including:

1. Moving the project’s location out of the Montana Mountains to protect sensitive species. Thacker Pass is dry and dominated by sage brush that has sustained fire damage and is therefore considered a lower-quality habitat area.
2. Building stringent requirements into the project from an early stage, including planning, monitoring and mitigation measures.
3. Establishing and maintaining game corridors for large mammals in the region.

Water Stewardship

Our priority is to sustainably manage water resources by limiting its use and safeguarding its quality. We engage with our neighboring communities to collaboratively manage shared water resources throughout the project life cycle. From the outset, we have incorporated water stewardship considerations into our project decisions and design – a reflection of our driving focus on using water efficiently and limiting water quality impacts.

Both Caucharí-Olaroz in the Jujuy region of Argentina and Thacker Pass in northern Nevada are considered low-medium for overall water risk, whereas Pastos Grandes is considered low, according to the Water Risk Atlas

Thacker Pass        

In designing and developing Thacker Pass, Lithium Americas will leverage available filtration, evaporation and centrifugation technology, to maximize the reuse and recycling of processed water, limiting the amount of water obtained from natural sources. Based on a detailed water cycle assessment, any water withdrawn for the project is expected to be recycled and reused an average of 7 times within the production process.

Thacker Pass is being designed as a Zero Liquid Discharge facility, intended to prevent the discharge of industrial wastewater into the environment. This is an extensive commitment because it means all water that is filtered from tailings must be evaporated or recycled for reuse within the site’s production process.  

To minimize the cumulative impact of water withdrawal on the local aquifer, Thacker Pass will use existing water rights so that the overall withdrawal volume is consistent with past years. Additionally, when water rights were transferred from agricultural use to industrial use in 2021, nearly a quarter (22.5%) of the total allowable withdrawal volume was returned to the state of Nevada. No additional water rights are required for Phase 1.

In February 2022, Thacker Pass received the State of Nevada Water Pollution Control Permit, which officially authorizes the construction, operation and closure of the mine in accordance with limitations/conditions set forth in the permit.

We will also develop compliance management and reporting systems that monitor water withdrawal and consumption in advance of construction to support compliant operations.

Developing a Skilled Work Force

A key aspect of our recruitment program is to proactively support local community development and skills training organizations.

THACKER PASS

Building Thacker Pass will require over 1,000 skilled workers. Operating it will require approximately 500 family-supporting permanent positions for the life of the mine (40 years). We’ve struck a partnership with Career Bound NV – a regional work-based learning program that allows Nevada students to explore in-demand career fields and provides opportunities to participate in internships, work experience and apprenticeship programs.

We are actively supporting the organization’s BuildNV Core Construction Training Program, which provides 80 hours of training to students to learn basic skills for the construction workforce and beyond. Thacker Pass has numerous in-demand positions that will offer these students several paths that lead to middle and higher-income salaries with benefits – everything from construction equipment operators, skilled laborers and mining operators to chemical lab technicians, environmental managers and more.

The sustainability and resiliency of our industry depends on a pipeline of talent that will emerge from programs such as Career Bound NV-BuildNV. We will continue to support these and other critical workforce training programs to address our workforce development landscape now and for years to come.