Lithium Americas Corp.'s shares touched a record low on Wednesday after the company announced a significant cost increase for its flagship Nevada lithium mine project. According to reports from Bloomberg, the stock fell as much as 10% to an all-time low of $1.70 before paring the loss to 7.7% in New York trading. The company's shares have slumped around 60% this year, highlighting the ongoing challenges facing the domestic lithium supply chain initiative.
The company raised the cost of building its Thacker Pass mine in Nevada by almost $900 million, bringing the first phase construction cost to $3.83 billion from a previous estimate of $2.93 billion. As reported by Bloomberg, the Trump administration's tariffs on equipment imports from outside the US contributed significantly to the cost increase. Additional factors include higher-than-expected labor costs for piping, steel and equipment due to competition for skilled workers and strained availability. CEO Jonathan Evans confirmed that the company is targeting mechanical completion for late 2027, with Phase 1 advancing toward peak construction activity by year-end 2026.
Lithium Americas increased its full-year 2026 capital expenditure guidance to $1.7 billion to $2 billion from the previous range of $1.3 billion to $1.6 billion. The company now estimates the revised budget and other changes create an additional funding requirement of about $995 million, with $650 million expected to come from its own contributions and $315 million from Department of Energy loan accounts. According to Bloomberg, the company expects to cover around $995 million in additional funding requirements through $650 million in company contributions, $315 million in existing U.S. Department of Energy loan reserves, and a $30 million reduction in reserve requirements.
Thacker Pass is being developed through a joint venture with General Motors, which currently holds a 38% stake while Lithium Americas owns the remaining 62%. The project is expected to produce 40,000 metric tons a year of battery-grade lithium carbonate once its first phase reaches full capacity, making it the largest lithium mine in North America. According to Bloomberg, the US produces less than 1% of global lithium supply, leaving automakers and battery manufacturers heavily reliant on overseas sources, with China dominating the processing of the metal and production of lithium-ion batteries.
The ballooning project costs arrive against a difficult backdrop for lithium producers, as the metal has fallen by more than half from a May peak. Wall Street expects Lithium Americas to post a loss of $0.03 per share in Q3. Despite the cost increases, Lithium Americas said the higher price tag will not change the construction schedule, which aims to begin production in 2028. The project is positioned to support domestic electric-vehicle and energy-storage supply chains once operational, addressing the critical supply chain gap in the US lithium market.
