Lithium Americas raises Thacker Pass cost estimate by 31% to $3.83bn
Lithium Americas on Wednesday increased its cost estimate for its flagship Thacker Pass lithium project to $3.83 billion, an increase of 31 per cent, the company said, giving higher labour, construction and logistics costs as reasons. The company said the revised budget adds $895 million in capital costs and raises the Nevada-based project's funding requirements by about $995 million. It said it…
Lithium Americas raised its Thacker Pass lithium project cost estimate by 31% to $3.83 billion on Wednesday, citing higher labour, construction, and logistics expenses. The Nevada-based mine, a joint venture with General Motors, aims to produce 40,000 tonnes of battery-grade lithium carbonate annually when fully operational. The company expects to secure the additional funding through internal contributions and the U.S. Energy Department's loan reserves.
Lithium Americas' shares dropped over 8% in Wednesday trading. The company plans to begin Phase 1 construction in late 2027, with completion expected by the end of 2028. Despite external factors impacting the project's cost, Lithium Americas CEO Jonathan Evans remains confident that the project will be funded as planned, emphasizing its importance for America's economic and national security.
However, the rising costs highlight the challenges faced in establishing a US supply chain for critical minerals, as most production currently occurs in Australia, Chile, and China.
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- Lithium Americas raises Thacker Pass cost estimate by 31% to $3.83bn thenationalnews.com
