Lithium Americas raises Thacker Pass Phase 1 cost estimate by 31% to $3.83 billion

Lithium Americas on Wednesday raised the estimated cost of Phase 1 of its Thacker Pass lithium project in Nevada by 31% to $3.83 billion, citing higher labor, construction and logistics costs.

The revised estimate adds $895 million in incremental capital expenditure and increases the project’s funding requirement by about $995 million, the company said. Lithium Americas expects to cover the higher funding requirement through contributions and available U.S. Department of Energy loan reserves.

Tariff and logistics costs accounted for about $100 million of the increase, while higher labor installation rates for piping, steel and equipment added $245 million.

The company expects to spend $1.7 billion to $2.0 billion on Phase 1 this year, up from its prior estimate of $1.3 billion to $1.6 billion.

Phase 1 is expected to ramp up to commercial production in 2028 and produce a nominal 40,000 tons annually at full capacity.

Thacker Pass is a joint venture between Lithium Americas and U.S. automaker General Motors and holds enough lithium to build 1 million electric vehicles annually.

Lithium Americas had about $1.3 billion in cash and restricted cash as of September 30, including about $360 million held at the Thacker Pass joint venture.

Shares of the company were down 6.3% in morning trading, according to BNN Bloomberg. Mining.com reported that investors sent Lithium Americas shares down almost 8% to C$2.48 apiece in early Toronto trading, leaving the company with a market capitalization of nearly C$544 million ($382 million).

CEO statement

"Thacker Pass is on track to deliver America’s largest fully integrated source of domestic battery-quality lithium carbonate, and we are building it at pace," CEO Jonathan Evans said in a statement, according to Mining.com. "Phase 1 is advancing toward peak construction activity by year end 2026, with mechanical completion targeted for late 2027."

Why it matters

The cost increase underscores the challenges of building a domestic lithium supply chain in the US, where rising wages, skilled labour shortages and tariffs are adding pressure to major mining developments, Mining.com reported. The revised estimate puts greater pressure on construction productivity and cost controls as the project moves through its most labour-intensive stages. Further increases could strain available financing even if the company maintains its production schedule.

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Sources

• bnnbloomberg.ca: Lithium Americas raises its Thacker Pass cost estimate
• mining.com: Lithium Americas’ flagship Thacker Pass costs jump 31% - MINING.COM
• finimize.com: Lithium Americas Lifted Thacker Pass Phase 1 Costs 31% - Finimize
• miningweekly.com: Lithium Americas raises Thacker Pass cost estimate by 31%

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.