Lithium Americas raises Thacker Pass cost estimate by 31%

Summary

• Lithium Americas raised the Phase 1 cost estimate for its Nevada Thacker Pass project by 31% to US$3.83 billion due to higher labor, construction, & logistics expenses.
• The company's shares fell 6.3% in morning trading following the announcement.
• The revision adds $895 million in incremental capital expenditure, increasing the funding requirement by approximately $995 million.
• Tariff & logistics costs contributed about $100 million to the increase, while higher labor installation rates for piping, steel, & equipment added $245 million.
• Lithium Americas plans to cover the additional funding through contributions & available U.S. Department of Energy loan reserves.
• The company now expects to spend $1.7 billion to $2.0 billion on Phase 1 this year, up from the prior estimate of $1.3 billion to $1.6 billion.
• Phase 1 is scheduled to reach commercial production in 2028 with a full capacity of 40,000 tons annually.
• The Thacker Pass project is a joint venture between Lithium Americas & General Motors, holding enough lithium to build 1 million electric vehicles annually.
• As of September 30, the company held approximately $1.3 billion in cash & restricted cash, including $360 million at the Thacker Pass joint venture.