Lithium Americas raises Thacker Pass cost estimate to US$3.83B
The Nevada project retains late-2027 mechanical completion and a 2028 production ramp-up, with capital needs expected to remain funded.
Mara Quinlan
Lithium Americas Corp. TSELAC NYSELAC said on Wednesday its construction cost estimate for Thacker Pass Phase 1 in Nevada rose to US$3.83 billion, including contingency. The US$900 million increase from US$2.93 billion raises the project's capital requirements, although the company expects available sources to cover anticipated needs.
Shares fell 6.3 per cent to C$2.69 on the Toronto Stock Exchange at 4 p.m. EST on Nov. 10, according to the TSELAC quote page. That close preceded Wednesday's announcement.
The Nov. 11 update keeps mechanical completion targeted for late 2027 and ramp-up to commercial production expected in 2028. At full capacity, the first phase is expected to produce 40,000 tonnes of battery-quality lithium carbonate a year.
Lithium Americas said anticipated capital needs are expected to be funded through available sources. As of Sept. 30, more than 80 per cent of the value of third-party contracts had been committed and more than 50 per cent incurred.
Detailed engineering was complete and procurement was more than 90 per cent complete as of Sept. 30, according to the update. Outstanding procurement mainly involved final equipment and bulk-material deliveries, which the company expects by year-end.
The Nov. 11 estimate adds about US$245 million for installing piping, steel and equipment, reflecting labour hours and the availability of skilled workers. It also includes about US$150 million for higher craft wages and compensation.
Lithium Americas attributed another US$100 million in the Nov. 11 revision to tariffs and logistics, including shipping constraints and reduced U.S. fabrication capacity. The tariff component is now estimated at about US$60 million as most equipment and materials have arrived.
Higher engineering, procurement and construction-management staffing adds about US$100 million to the Nov. 11 estimate. Wage rates for those staff and contractors add about US$150 million, while additional contingency contributes about US$150 million.
The workforce stood at about 1,900 on Sept. 30, including more than 1,600 craft workers. Lithium Americas expects total staffing to reach about 2,200 by the end of 2026 as construction reaches peak activity.
"Phase 1 is advancing toward peak construction activity by year end 2026, with mechanical completion targeted for late 2027," chief executive Jonathan Evans said in the release.
The company is moving into piping and electrical installation as it builds its operations team. By the end of October, 80 per cent of the required fabricated piping material was in transit or already at the site.
Read more: Century Lithium advances Angel Island plan toward environmental review
Lithium Americas targets initial commissioning of plant utilities and connection of the site substation to the electrical grid by the end of 2026.
