Lithium Americas Corp. (LAC) told investors Wednesday that building the first phase of its Thacker Pass lithium mine in Nevada will cost about $900 million more than previously projected, sending the stock lower as the company scrambled to explain how it would pay for the overrun.
The Phase 1 capital estimate rose to $3.83 billion from $2.93 billion, an increase of roughly 31%. Management attributed the jump to higher labor costs, tariffs and logistics expenses, along with stiffer competition for skilled construction workers, more expensive installation work and the need for additional on-site staffing. The company also added about $150 million in contingency funds to cover remaining project risks.
Alongside the revised figure, Lithium Americas lifted its 2026 capital expenditure forecast to a range of $1.7 billion to $2 billion, up from $1.3 billion to $1.6 billion.
To close the gap, the company said it needs roughly $995 million in additional funding. It plans to draw $650 million from contributions to its joint venture with General Motors (GM) and $315 million from existing U.S. Department of Energy loan reserve accounts. Amendments to the federal loan agreement are expected to trim certain reserve requirements by about $30 million.
As of Sept. 30, Lithium Americas reported about $1.3 billion in cash and restricted cash, including $359.5 million held at the joint venture level. GM holds a 38% stake in the venture, with Lithium Americas owning the remaining 62%.
| Thacker Pass Phase 1 | Revised | Previous |
|---|---|---|
| Capital cost estimate | $3.83 billion | $2.93 billion |
| 2026 capex guidance | $1.7B-$2B | $1.3B-$1.6B |
| Contingency added | ~$150 million | – |
| Additional funding needed | ~$995 million | – |
Note: Figures as announced by the company on Wednesday.
The timeline, however, is unchanged. Lithium Americas still expects mechanical completion of Phase 1 in late 2027, with production ramping up in 2028. Once fully operational, the facility is designed to produce about 40,000 metric tons of battery-quality lithium carbonate a year. Engineering work is finished, and procurement of equipment and materials has passed 90%.
“Phase 1 is advancing toward peak construction activity by year-end 2026, with mechanical completion targeted for late 2027,” CEO Jonathan Evans said. He added that despite “external and internal factors impacting the Project’s capital cost estimate,” the anticipated costs “are expected to remain funded as we continue to deliver on our execution plan and bring the Project safely into production.”
Thacker Pass has been marketed as the largest fully integrated domestic source of battery-grade lithium carbonate and the country’s most concrete near-term route to a reliable homegrown supply. The site, one of Nevada’s biggest construction projects, employs close to 2,000 workers and carries backing from both the Energy Department and GM.
The cost revision lands as Lithium Americas prepares to report third-quarter results. The company is pre-revenue, and Wall Street expects a loss of $0.03 per share, according to Fiscal.ai. The shares have fallen more than 60% so far in 2026.
The overrun puts fresh scrutiny on the economics of building out a U.S. lithium supply chain at a time when labor and equipment costs are climbing. For investors, the central question is whether the joint venture and federal loan reserves can absorb the increase without further dilution or delay, and whether the 2027 completion target survives a construction push that is only now approaching its peak.