Updated: Lithium Americas Corporation has raised the cost estimate for the Thacker Pass project by 31%

Update: Added share information in paragraph 2

Reuters, November 11 - Lithium Americas (LAC.TO) on Wednesday raised the estimated cost for the first phase of its Thacker Pass lithium project in Nevada by 31% to $3.83 billion, citing higher labor, construction, and logistics expenses.

The company's shares fell 6.3% in early trading.

Details are as follows:

• The company said the revised estimate adds $895 million in incremental capital expenditures and increases the project’s financing needs by about $995 million

• Lithium Americas stated it expects to meet the increased funding requirement through contributions and an existing loan reserve from the U.S. Department of Energy

• Tariffs and logistics costs account for about $100 million of the increase, while higher installation labor costs for pipelines, steel, and equipment added $245 million

• The company now expects to spend $1.7 billion to $2 billion on the first phase this year, compared with a previous estimate of $1.3 billion to $1.6 billion

• Commercial production for Phase 1 is expected by 2028, with a full operating annual output of 40,000 tons

• Thacker Pass is a joint venture between Lithium Americas and U.S. automaker General Motors GM.N, with lithium reserves sufficient to support the production of 1 million electric vehicles per year

• As of September 30, Lithium Americas held about $1.3 billion in cash and restricted cash, including approximately $360 million held by the Thacker Pass joint venture

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