Target Hospitality Corp. announced a multi-year construction and services agreement with Lithium Americas Corp. to provide comprehensive facility services and hospitality solutions. This contract supports the development of the Thacker Pass critical minerals project in Winnemucca, Nevada, which is focused on establishing a North American critical minerals supply chain.
The agreement involves the construction and full turnkey support for a Workforce Hub capable of accommodating approximately 2,000 individuals, with an initial term through 2027. This contract is expected to generate approximately $140 million in revenue over its initial term, including $76 million of committed minimum revenue. Target Hospitality anticipates realizing approximately $68 million of this committed minimum revenue in 2025.
Target Hospitality plans to allocate between $15 million and $20 million in growth capital to establish new regional network capacity to support this project. This initiative marks a significant milestone in Target's commitment to strategic diversification and geographic expansion, positioning the company for additional growth opportunities in the expanding critical mineral development region. First occupancy is anticipated by mid-2025, with completion of the Workforce Hub by year-end 2025.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.