Lithium Americas Raises Thacker Pass Cost Estimate
The company lifted the Phase 1 capital cost estimate to $3.83 billion, including contingency, from $2.93 billion and said the incremental funding requirement is about $995 million.
Lithium Americas Corp. (LAC) raised its Thacker Pass Phase 1 capital cost estimate to $3.83 billion, including contingency, from a prior estimate of $2.93 billion, and said the incremental funding requirement arising from the new estimate and other assumption changes is about $995 million.
The lithium developer said the higher estimate reflects labor, logistics, tariffs and additional contingency after the April 2025 final investment decision. Peak capital expenditure is still expected in fiscal 2026, with the balance spent through 2027 and into 2028 during ramp-up. Mechanical completion remains targeted for late 2027, with ramp-up through 2028.
The company now targets fiscal 2026 Thacker Pass Phase 1 total capital expenditure of $1.7 billion to $2.0 billion. As of September 30, 2026, $2.4 billion of construction capital costs and other project-related costs had been capitalized, of which $2.3 billion is part of the total Capex Estimate.
The $995 million incremental funding requirement comprises $895 million of incremental capital expenditure, an additional $58 million from net increases to Sustaining Capex Reserve Account requirements under the DOE Loan through March 2028, and a further net increase of $42 million across other areas, including pre-completion expenditures, partially offset by improved estimated operating cash flow during the 2028 ramp-up, largely from changes in the lithium carbonate pricing forecast.
Pursuant to an omnibus waiver, consent and amendment signed November 10, 2026, and related agreements among the DOE, the company and General Motors Holdings LLC, the incremental funding requirement is anticipated to be met through $650 million in contributions from the company to the Thacker Pass joint venture and, as and when required, $315 million currently credited to certain reserve accounts established under the DOE Loan. Those contributions will increase the company’s ownership percentage in the JV. Amendments under the same waiver are expected to decrease the Sustaining Capex Reserve Account funding requirement by about $30 million during and after ramp-up.
On October 7, 2026, the company contributed $120 million of reserve-account funding required under the October 2025 omnibus waiver. It is working with the DOE and GM to finalize related implications on JV interest holdings.
Construction continued to advance. Detailed engineering was completed and procurement was over 90% complete as of September 30, 2026. Over 80% of the value for third-party contracts had been committed, with over 50% incurred. Approximately 1,900 personnel were on site, including over 1,600 craft workers, with about 2,200 expected by year-end 2026. About 60 truckloads of equipment and materials were arriving daily proximate to September 30. All major structural steel had been delivered by the end of August. 4.7 million workhours were completed without a serious injury or lost-time incident.
Capitalized Thacker Pass Phase 1 construction costs included in the Capex Estimate were $639.6 million in the three months ended September 30, 2026. Total capitalized development, interest and construction was $662.5 million in the quarter.
Net income attributable to LAC stockholders was $74.7 million in the three months ended September 30, 2026, versus a $197.7 million loss a year earlier. The swing was driven largely by a $53.6 million gain on the JV Warrant obligation, a $39.3 million gain on the Orion embedded derivative and a $5.2 million gain on Yorkville convertible debentures, all reflecting the decline in the company’s share price to $2.63 at September 30, 2026. Transaction costs were $7.3 million, primarily Yorkville advisory and professional fees. Other income was $8.5 million, primarily higher interest income from ATM proceeds.
Cash and restricted cash was about $1.3 billion at September 30, 2026, including $359.5 million at the JV level. Cumulative DOE Loan advances reached $1.448 billion after a $239.0 million fourth advance on August 21, 2026. The company issued $150 million of Yorkville convertible debentures on August 13, 2026; Yorkville converted $40.5 million of principal and accrued interest for 14.3 million common shares during the quarter. As of November 11, 2026, 377,334,749 shares were issued and outstanding.
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