Lithium Americas said its Nevada Thacker Pass project needs about $995 million in additional funding, as higher construction costs pushed the first phase budget to $3.83 billion.
The Phase 1 estimate, including contingency, rose from $2.93 billion, a roughly 31% increase calculated from the rounded figures. The company separately put added capital expenditure at $895 million; the two rounded estimates differ by $900 million.
Lithium Americas allocated $245 million of the increase to installation labor for piping, steel and equipment. Its other listed items include $150 million for craft labor wage and compensation inflation, $100 million for tariffs and logistics, $100 million for engineering, procurement and construction management (EPCM) and contractor staffing, $150 million for EPCM and contractor wage rates, and $150 million in added contingency. The company cited competition for skilled union workers, shipping constraints, fuel prices and reduced U.S. fabrication availability.
The total additional funding requirement includes $895 million in added capital expenditure, $58 million in higher sustaining-capital reserve requirements through March 2028, and a net $42 million increase across other areas. Lithium Americas listed $650 million in planned joint-venture contributions and up to $315 million from reserves funded under a U.S. Department of Energy loan, totaling $965 million. It said a Nov. 10 amendment is expected to reduce sustaining-capital reserve requirements by about $30 million, while details on timing were still being worked out with the department and General Motors.
It also said its contributions would increase its share of the joint venture.
The company raised its fiscal 2026 capital-expenditure guidance to $1.7 billion-$2.0 billion from $1.3 billion-$1.6 billion. Phase 1 construction costs totaled $2.2613 billion through Sept. 30, 2026, a preliminary, unaudited figure. At that date, about 1,900 people were at the site, including more than 1,600 craft workers, and procurement was more than 90% complete.
Phase 1 is designed to produce 40,000 tonnes of battery-quality lithium carbonate a year at full capacity. The company targets mechanical completion in late 2027 and production ramp-up through 2028. It planned to publish its full third-quarter 2026 results on Nov. 12, 2026.
