Lithium Americas Estimates Thacker Pass’ Additional Funding Needs at About $995 Million

Key Facts

Lithium Americas estimated additional funding needs of about $995 million for the Thacker Pass project, including $895 million in additional capital expenditures, according to an update issued by the company on November 11, 2026. The estimate covers the impact of a revised capital expenditure estimate and other changes to project assumptions. The company said the additional funding would be covered by expected contributions of $650 million from it to the joint venture, along with $315 million deposited in reserve accounts under a U.S. Department of Energy loan. The update puts the new funding requirements at the forefront of the project’s development risks, while the company continues to target mechanical completion of Phase 1 in late 2027. It also raised its capital expenditure guidance for the phase in fiscal 2026 to a range of $1.7 billion to $2.0 billion.

The company said in August that the total capital expenditure estimate in its technical report was $2.93 billion, based on the report in effect as of December 31, 2024. As of June 30, 2026, construction costs and other project-related costs capitalized by the company totaled $1.8 billion. Of that amount, $1.6 billion was included in the $2.93 billion capital estimate. The company now targets total spending of $1.7 billion to $2.0 billion on Phase 1 during fiscal 2026, the year in which it expects capital spending to peak. These figures show the scale of spending completed or targeted over different time periods, alongside the additional funding needs estimated in the November update.

The company attributed part of the increase to labor and installation costs. It estimated the impact of updated hours required to install piping, steel and equipment at about $245 million, citing limited availability of skilled labor and regional competition for workers. It estimated the impact of inflation in craft workers’ wages and compensation packages at about $150 million. It also estimated the impact of increased staffing levels at the engineering contractor and its subcontractors at about $100 million, and the impact of inflation in their wages at about $150 million. These items add pressure from execution hours, wages and staffing needs to the project’s construction costs.

The cost update also included an additional allowance of about $150 million for contingency, applying a 10% rate to estimated costs that the company has not yet committed to or spent. For tariffs and logistics, the company estimated the total impact at about $100 million and cut its estimate of tariff exposure to about $60 million. Its previously disclosed estimate of tariff exposure was between $80 million and $100 million. In its previous update, the company said the cost environment had been affected by reduced availability of ocean shipping routes, lower availability of U.S. manufacturing capacity, logistics constraints, inflation and intensifying competition for skilled labor. At the time, it estimated total tariff exposure at between $80 million and $100 million, with most of it expected to be incurred during 2026.

Chief Executive Jonathan Evans said the company had completed its definitive cost estimate while maintaining its target of mechanical completion in late 2027. He added: "We are proud of the construction progress made to date, and of the focus and hard work in completing the definitive capital cost estimate, while maintaining our target of mechanical completion in late 2027." The company says detailed engineering design is complete and procurement of equipment and materials is more than 90% complete. After mechanical completion, it targets ramping up toward production during 2028, and Evans said the company is focused on bringing the project to full commercial production that year. Phase 1 has a designed nameplate capacity of 40,000 tonnes per year of battery-quality lithium carbonate.

Lithium Americas owns a 62% stake in the joint venture that owns Thacker Pass, while General Motors owns 38%. As of June 30, 2026, Lithium Americas reported having about $1.3 billion in cash and restricted cash, including $530.3 million at the joint venture level. The plan to cover the additional funding needs includes $650 million in contributions from the company to the joint venture, as well as $315 million available in reserve accounts linked to a U.S. Department of Energy loan. The company said these funds would be used as needed to cover the additional funding requirements. In the stock market, the company’s shares, which trade under the ticker LAC, closed at $1.89 on November 10, 2026.