Lithium Americas targets $1.6B for Thacker Pass build

Lithium Americas (TSX, NYSE: LAC) says it is targeting a capital spend of between $1.3 billion and $1.6 billion for Stage 1 of its Thacker Pass project in Nevada this year. A majority of that capex will be used on project construction, with an estimated cost of $1.2 to $1.5 billion.

Construction of Stage 1 is progressing, with detailed engineering design at 93% completion and procurement at 60% by the end of 2025, the Vancouver-based lithium developer said in a project update issued on Thursday.

“As planned, we expect to reach peak construction employment of roughly 1,800 skilled craftspeople by year-end,” Lithium Americas president and CEO Jonathan Evans stated. “Lithium market conditions are strengthening just as the project prepares to come online in late 2027, with full ramp-up through 2028.”

Western Hemisphere’s largest

The project is positioned as the Western Hemisphere’s largest lithium source, with output far exceeding that of larger peer Albemarle’s (NYSE: ALB) Silver Peak, also in Nevada. Once complete, the Thacker Pass mine is expected to produce 40,000 tonnes of lithium carbonate annually, which is enough for about 800,000 electric vehicles. The project hosts proven and probable mineral reserves of 14.3 million tonnes of lithium carbonate equivalent (LCE), at an average grade of 2,540 parts per million, according to a resource update in last year.

Lithium Americas shares gained about 1% to C$6.29 apiece on Thursday afternoon in Toronto, for a market capitalization of about C$1.3 billion. The stock has traded in a 12-month range of C$3.30 to C$14.75. 

The company said it expects to reach peak construction employment this year, with nearly twice as many workers hired by year-end compared to 2025.

$2.3B loan

The remaining portion of capex will be allocated to what the company categorizes as “other capitalized development costs” and interest payments to the Department of Energy, which provided the company with a $2.23 billion loan for the first stage build.

The loan, the largest the Department has given to a miner, was announced in late 2024, allowing Lithium Americas to finance the planned three-year buildout of what would be North America’s next major producer of battery-quality lithium.

Amid a growing emphasis on the domestic critical mineral supply chain, the U.S. government last year took a 5% stake in Lithium Americas and a separate 5% stake in the Thacker Pass project. In addition to the DOE, the project also had strategic investments from General Motors (NYSE: GM), which owns a 38% stake, and Orion Resource Partners.