Key insights
- Lithium Americas has raised its capital cost estimate for the Thacker Pass lithium project in Nevada to $3.83 billion, an increase of $900 million from the prior estimate. The company cited tariffs, logistics, labor wage inflation, and installation rates as key drivers. The updated estimate also includes increased 2026 capital expenditure guidance. The company plans to fund the incremental requirement through company contributions and reserve accounts, which will increase its ownership in the joint venture with General Motors.
VANCOUVER, British Columbia - Lithium Americas Corp. (TSX:LAC) (NYSE:LAC) reported an updated capital cost estimate for its Thacker Pass lithium project in Nevada of $3.83 billion, an increase from the prior estimate of $2.93 billion, according to a press release statement.
The company said mechanical completion of Phase 1 construction remains targeted for late 2027, with ramp-up to commercial production expected in 2028. The project is designed to produce 40,000 tonnes per year of battery-quality lithium carbonate at full capacity.
The $900 million increase in the capital cost estimate reflects several factors. Tariffs and logistics costs added approximately $100 million, while craft labor wage rate inflation contributed $150 million. Labor installation rates for piping, steel and equipment accounted for $245 million of the increase. Engineering, procurement and construction management staffing levels added $100 million, with wage rate increases for these personnel contributing another $150 million. The company allocated an additional $150 million in contingency.
As of September 30, 2026, approximately 1,900 personnel were on site, including over 1,600 craft workers. The company said detailed engineering is complete and procurement is over 90% finished. Over 80% of third-party contract value has been committed with over 50% incurred.
The company updated its 2026 capital expenditure guidance to a range of $1.7 billion to $2.0 billion for Thacker Pass Phase 1, up from the original guidance of $1.3 billion to $1.6 billion.
Lithium Americas estimates the incremental funding requirement at approximately $995 million. The company said this will be met through $650 million in contributions from the company to the joint venture level and $315 million from reserve accounts established under its U.S. Department of Energy loan. These contributions will increase the company’s ownership percentage in the joint venture with General Motors Holdings LLC.
As of September 30, 2026, the company had approximately $1.3 billion in total cash and restricted cash. On August 13, 2026, the company issued $150 million in subordinated convertible debentures to an affiliate of Yorkville Advisors Global, LP.
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