Target Hospitality Corp. Announces Multi-Year Workforce Hub Contract

Target Hospitality Corp. (NASDAQ: TH) recently disclosed a significant development through an exhibit filed with the Securities and Exchange Commission (SEC). The company unveiled a multi-year construction and services agreement with Lithium Americas Corp., marking a strategic move towards diversification and regional network expansion.

Under the agreement, Target Hospitality will be engaged in providing comprehensive facility services and premium hospitality solutions to support Lithium Americas in the development of Thacker Pass Project, located in Winnemucca, Nevada. This partnership is aimed at strengthening the North American critical minerals supply chain by establishing an all-inclusive workforce housing community near the world’s largest known measured lithium resource.

Lithium Americas, in collaboration with General Motors (GM), holds a controlling interest in the Thacker Pass Project. GM has made substantial investments in the project, which includes a loan from the U.S. Department of Energy’s Loan Programs Office. The Thacker Pass Project is projected to significantly contribute to the domestic production of lithium batteries, supporting the establishment of a robust North American-focused supply chain for critical raw materials.

Construction of the Workforce Hub, with an estimated capacity to house around 2,000 individuals, is underway. Target Hospitality foresees the completion of the hub by the end of 2025, with initial occupancy expected by mid-2025. The company anticipates the Workforce Housing Contract to generate approximately $140 million in revenue over its initial term, with a significant portion of this revenue expected to materialize in 2025.

Furthermore, Target Hospitality plans to allocate between $15 and $20 million towards establishing additional regional network capacity. The expansion is aimed at supporting the evolving needs of the new Workforce Hub and creating a strategic regional footprint to capitalize on potential growth opportunities in the region’s lithium and related critical mineral developments.

Brad Archer, President and Chief Executive Officer of Target Hospitality, expressed enthusiasm regarding the partnership with Lithium Americas, emphasizing the strategic significance of the collaboration in advancing domestic lithium supply chain development and expanding the company’s geographic presence.

This announcement underscores Target Hospitality’s competence in delivering tailored solutions across diverse markets. The company’s robust business fundamentals, complemented by existing contract portfolios, support a diversified revenue mix with high revenue visibility. The company released a preliminary 2025 financial outlook, forecasting total revenue in the range of $385 to $395 million and Adjusted EBITDA between $150 and $160 million.

It’s important to note that certain statements in the press release, including the financial outlook presented, are considered forward-looking statements subject to various risks and uncertainties. Target Hospitality remains committed to providing relevant information and updates as the partnership and projects progress.

For further information, interested parties can contact Mark Schuck at (832) 702-8009 or via email at [email protected].

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Target Hospitality’s 8K filing here.

Target Hospitality Company Profile

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services.