Lithium Americas recently
raised the estimated cost of Phase 1 of its Thacker Pass lithium project in Nevada by 31% to $3.83-billion, citing higher labor, construction and logistics costs.
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 Department of Energy loan reserves.
Tariff and logistics costs accounted for about $100-million of the increase, while higher labor installation rates for piping, steel and equipment added $245-million.
The company expects to spend $1.7-billion to $2-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 a year at full capacity.
Thacker Pass is a joint venture between Lithium Americas and US automaker General Motors and holds enough lithium to build one-million electric vehicles a year.
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.