Lithium Americas raises Thacker Pass cost estimate by 31%
LAC•Lithium Americas raised the estimated cost of Phase 1 of its Thacker Pass project in Nevada by 31% to $3.83 billion, citing higher labor, construction and logistics costs. The revision adds $895 million in capital expenditure and increases the funding requirement by about $995 million.
1. Higher project costs
Lithium Americas said the revised estimate adds $895 million in incremental capital expenditure and raises Thacker Pass Phase 1’s funding requirement by about $995 million. Tariff and logistics costs account for about $100 million of the increase, while higher labor installation rates for piping, steel and equipment add $245 million.
2. Spending and production
The company expects to spend $1.7 billion to $2.0 billion on Phase 1 this year, up from its previous estimate of $1.3 billion to $1.6 billion. It expects to cover the higher funding requirement through contributions and available Department of Energy loan reserves. Phase 1 is expected to ramp up to commercial production in 2028 and produce a nominal 40,000 tons annually at full capacity.
3. Joint venture details
Thacker Pass is a joint venture between Lithium Americas and 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 joint venture.
