Thacker Pass estimate rises to $3.83 billion

The company plans to fund the added costs with a $650 million cash injection and draws from its U.S. Department of Energy loan reserve. The funding will expand Lithium Americas’ equity stake in its joint venture with General Motors, while the project remains on track for completion in late 2027 and commercial production in 2028.

Higher wage rates and slower-than-expected installation of piping and steel account for about $395 million of the increase, as competition for skilled union craft labor intensifies in Nevada. Additional engineering and contractor wages, tariffs and logistics costs have also contributed. Lithium Americas has included about $150 million in contingency reserves.

The company now expects 2026 capital costs of $1.7 billion to $2 billion, compared with its previous range of $1.3 billion to $1.6 billion. At the end of September, it held about $1.3 billion in cash and restricted cash, including about $360 million at the joint venture.

Phase 1 of Thacker Pass is designed for nominal annual production capacity of 40,000 tonnes of battery-quality lithium carbonate. The site hosts the world’s largest known measured lithium resource, according to the source article. A year ago, Lithium Americas renegotiated its $2.23 billion federal loan, giving the U.S. government warrants for a 5% equity stake in the company and a 5% economic stake in the project in exchange for support.