Lithium Americas on Wednesday raised the estimated cost of Phase 1 of its Thacker Pass lithium project in Nevada by 31 per cent to US$3.83 billion, citing higher labour, construction and logistics costs.
Shares of the company were down 6.3 per cent in morning trading.
The revised estimate adds $895 million in incremental capital expenditure and increases the project’s funding requirement by about $995 million, the company said.
Lithium Americas said it expects to cover the higher funding requirement through contributions and available U.S. Department of Energy loan reserves.
Tariff and logistics costs accounted for about $100 million of the increase, while higher labour installation rates for piping, steel and equipment added $245 million.
The company expects to spend $1.7 billion to $2.0 billion on Phase 1 this year, up from its prior estimate of $1.3 billion to $1.6 billion.
Phase 1 is expected to ramp up to commercial production in 2028 and produce a nominal 40,000 tons annually at full capacity.
Thacker Pass is a joint venture between Lithium Americas and U.S. automaker General Motors and holds enough lithium to build 1 million electric vehicles annually.
Lithium Americas had about $1.3 billion in cash and restricted cash as of September 30, including about $360 million held at the Thacker Pass joint venture.
(Reporting by Pranav Mathur in Bengaluru; Editing by Tasim Zahid and Jonathan Ananda)
