The key facts
- Thacker Pass cost estimate rose 31% to $3.83 billion, with $895 million added in capital costs
- Financing needs increased by roughly $995 million; sources are company funds and reserves under a US Department of Energy loan
- Lithium Americas shares fell more than 8% on Wednesday
Project budget grows by a third
Canada's Lithium Americas has raised the cost estimate for its flagship lithium project, Thacker Pass in Nevada, by 31% to $3.83 billion, the company said on Wednesday, The National reports. The revised budget adds $895 million in capital costs and increases the project's financing needs by roughly $995 million. The company expects to cover the additional funds through its own contributions and available reserves under a US Department of Energy loan. On the news, the company's shares fell more than 8% on Wednesday.
What exactly got more expensive
The main drivers of the cost increase are rising labor, construction and logistics costs. According to the company, rates for piping, steel and equipment installation added $245 million, while tariffs and logistics added another $100 million. Logistics costs, Lithium Americas notes, were hit hard by rising fuel prices, difficulties with global and domestic transportation, and reduced availability of manufacturing capacity in the US.
Timeline and significance of the project
CEO Jonathan Evans said construction of the first phase is planned for late 2027, with ramp-up throughout 2028.
Context: the US bet on domestic mining
Thacker Pass, a joint venture with General Motors, is one of the largest known lithium deposits in the US; at full capacity it is expected to produce 40,000 tonnes of battery-grade lithium carbonate per year. For now, the country's only operating commercial lithium mine is Silver Peak, which accounts for about 1% of global production. The cost overrun, as The National notes, exposes the difficulties of building an American supply chain: according to an analysis by Columbia's Centre on Global Energy Policy, Australia, Chile and China account for 90% of mining, and about 65% of the world's lithium processing is concentrated in China. In September 2025, the US Department of Energy received a 5% stake in Lithium Americas and another 5% in the form of warrants in the Thacker Pass joint venture, restructuring a multibillion-dollar loan. The Donald Trump administration is also taking stakes in other mining companies — MP Materials, USA Rare Earth, Vulcan Elements and Trilogy Metals — as part of a push for self-sufficiency in critical minerals.
