America’s Biggest Lithium Bet Just Got $900 Million Pricier

Lithium Americas Corp. (NYSE:LAC) stock fell Wednesday after the company raised its construction cost estimate for the Thacker Pass lithium project in Nevada by nearly $900 million.

The company announced the revised estimate Wednesday, ahead of its third-quarter earnings report.

Lithium Americas has pitched Thacker Pass as “America’s largest fully integrated source of domestic battery-quality lithium carbonate” and the nation’s “clearest near-term path to a reliable domestic supply.”

The project is backed by a federal Department of Energy loan and a joint venture with General Motors, and it employs nearly 2,000 workers at one of Nevada’s largest construction sites.

Thacker Pass Construction Costs Jump 31%

Lithium Americas increased its Phase 1 capital cost estimate to $3.83 billion from $2.93 billion, citing higher labor expenses, tariffs and logistics costs.

The roughly 31% increase reflects rising competition for skilled workers, higher installation costs and additional construction staffing requirements.

The company also added approximately $150 million in contingency funding to address remaining project risks.

Meanwhile, Lithium Americas raised its 2026 capital expenditure forecast to $1.7 billion-$2 billion from $1.3 billion-$1.6 billion.

Company Outlines $995 Million Funding Plan

Lithium Americas estimates it needs approximately $995 million in additional funding following the revised project cost assessment.

The company expects to cover the requirement through $650 million in contributions to its joint venture with General Motors and $315 million from existing U.S. Department of Energy loan reserve accounts.

Additionally, amendments to the federal loan agreement are expected to reduce certain reserve funding requirements by approximately $30 million.

As of Sept. 30, Lithium Americas held approximately $1.3 billion in cash and restricted cash, including $359.5 million at the joint venture.

Production Timeline Remains Unchanged

Despite higher costs, Lithium Americas maintained its construction schedule.

The company expects mechanical completion of Thacker Pass Phase 1 in late 2027, followed by production ramp-up in 2028.

Once fully operational, the facility is designed to produce approximately 40,000 metric tons of battery-quality lithium carbonate annually.

Moreover, engineering work is complete, while equipment and materials procurement has surpassed 90%.

CEO Jonathan Evans said the company remains focused on completing construction and transitioning Thacker Pass into commercial production.

Earnings Ahead

Investors will now turn their attention to Lithium Americas’ third-quarter earnings report, scheduled for Friday, Nov. 13.

LAC Price Action: Lithium Americas shares were down 7.52% at $1.74 at the time of publication on Wednesday, according to Benzinga Pro data.

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