Lithium Americas has raised the estimated cost of Phase 1 of its Thacker Pass lithium project in Nevada by 31% to $3.83 billion, citing higher labour, construction and logistics costs. The company announced the revised estimate on Wednesday, 11 November 2026, according to Reuters. The new figure is up from a previous estimate of $2.93 billion. It adds $895 million in incremental capital expenditure and increases the project's funding requirement by about $995 million. The company said it expects to cover the extra funding through its own contributions and available reserves under its US Department of Energy loan. ## What drove the increase Tariff and logistics costs accounted for about $100 million of the rise, while higher labour installation rates for piping, steel and equipment added $245 million. Craft labour wage inflation added about $150 million, engineering and construction management staffing a further $100 million, contractor wage rates another $150 million, and additional contingency $150 million. The company now expects to spend $1.7 billion to $2.0 billion on Phase 1 this year, up from a previous estimate of $1.3 billion to $1.6 billion. Mechanical completion is targeted for late 2027, with ramp-up to commercial production in 2028. ## A key US lithium project Thacker Pass, in Humboldt County, Nevada, is a joint venture between Lithium Americas and US carmaker General Motors. At full capacity, Phase 1 is expected to produce a nominal 40,000 tonnes of battery-quality lithium carbonate a year, and the project holds enough lithium to build one million electric vehicles annually. About 1,900 people were working on site at the end of September 2026. [Reuters](https://www.reuters.com/business/lithium-americas-raises-thacker-pass-cost-estimate-by-31-2026-11-11/)