Lithium Americas Updates Thacker Pass Construction and Issues 2026 Capex Guidance of $1.3–$1.6 Billion
Construction at Thacker Pass Phase 1 is advancing with approximately 950 personnel on site as of year-end 2025, with peak employment of roughly 1,800 expected in 2026. Photo Credit: Lithium Americas Corp.
Key Points
- Lithium Americas Corp. (TSX/NYSE: LAC) provided a project update for year-end 2025 and issued 2026 capital expenditure guidance for Thacker Pass Phase 1 on February 19, 2026.
- The company is targeting 2026 capex of $1.3–$1.6 billion, including $1.2–$1.5 billion in construction costs, $30–$40 million in other capitalized development costs, and $45–$55 million in capitalized DOE loan interest.
- As of December 31, 2025, detailed engineering design was 93% complete and procurement was 60% complete, with approximately 950 personnel on site.
- 1.69 million workhours were completed in 2025 without a serious injury or lost-time incident, with a total recordable incident frequency rate of 0.21.
- Mechanical completion of the Phase 1 processing plant remains targeted for late 2027, with production ramp-up through 2028.
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Q4 2025 Construction Progress
Lithium Americas reported significant progress across Thacker Pass Phase 1 during Q4 2025. At year-end, approximately 950 personnel were on site — including around 740 manual craft workers and 210 additional site staff — with peak construction employment of roughly 1,800 expected in 2026.
The company completed 1.69 million workhours in 2025 without a serious injury or lost-time incident. The total recordable incident frequency rate for the year was 0.21, reflecting the company’s emphasis on site safety as a top priority.
“2025 was a pivotal year for Lithium Americas and the Thacker Pass Project with Phase 1 construction well underway. Safety remains our top priority, processing facilities are rising and critical equipment and materials are arriving daily.”
— Jonathan Evans, President and CEO, Lithium Americas Corp.
Active construction continued across multiple facilities within the processing plant during the quarter. Foundation, rebar and concrete work advanced at the Filter Building, Magnesium Sulfate Building and Warehouse Facilities, while structural steel installation progressed at the Filter Building, Magnesium Sulfate Building and Liquid Sulfur Tanks. Installation of certain long lead equipment also commenced in Q4 2025.
Environmental stewardship activities continued alongside construction, with active hydroseeding of disturbed areas across the site using native seeds. The company’s Workforce Hub became partially operational in September 2025 and housed nearly 700 residents as of February 13, 2026, with occupancy expected to grow in line with construction workforce ramp-up.
The company’s Operations and Business Readiness (OBR) team — responsible for de-risking the transition from construction through commissioning and into production — had 25 employees as of December 31, 2025. Key roles filled in 2025 include Site Operations Director, Lithium Carbonate Plant Manager, Sulfuric Acid Plant Manager and Maintenance Manager. Hiring is expected to accelerate throughout 2026 ahead of pre-commissioning activities in late 2026 and throughout 2027.
2026 Capital Expenditure Guidance
Lithium Americas is targeting a total capex range of $1.3 billion to $1.6 billion for Thacker Pass Phase 1 in fiscal year 2026. The guidance reflects three components: construction costs, other capitalized development expenditures, and capitalized interest on the U.S. Department of Energy loan.
| Component (US$) | 2026 Capex Guidance |
|---|---|
| Thacker Pass Phase 1 construction costs | $1.2 – $1.5 billion |
| Other capitalized development costs | $30 – $40 million |
| Capitalized interest on the DOE loan | $45 – $55 million |
| Total | $1.3 – $1.6 billion |
The construction cost figure includes estimated tariff exposure for equipment and materials sourced from Canada, China, India, the UAE, Turkey and the European Union. The company noted that approximately 75% of the total capital project cost structure relates to labor, contractors and other services not expected to be directly affected by tariffs. The guidance does not include $8.0 million in community contributions required to be expensed under US GAAP.
Full fiscal year 2025 capex is expected to be disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025, which is targeted for filing on March 19, 2026. Given the advanced level of engineering, the company expects to begin a definitive capital estimate for the full project in the first half of 2026.
DOE Loan Financing
Project financing for Thacker Pass Phase 1 includes a $2.23 billion loan from the U.S. Department of Energy, alongside strategic investments from General Motors Holdings LLC and Orion Resource Partners LP. The DOE holds warrants to purchase a 5% equity stake in Lithium Americas and a 5% non-voting interest in the Thacker Pass joint venture. The capitalized interest line in the 2026 guidance reflects the cost of carrying this loan during the construction period before production revenues begin.
2026 Development Milestones
Lithium Americas outlined several key construction and engineering milestones expected during 2026. Major long-lead equipment — including the steam turbine generator, sulfuric acid plant stacks and cold interpass heat exchanger — is expected to be delivered to the Thacker Pass site or the company’s fabrication yard in Winnemucca throughout the first half of the year.
In early January 2026, the first of nearly 100 completed pipe rack modules was delivered to site. The modules, fabricated offsite to reduce labour hours and improve safety, feature pre-installed pipe and cable trays and are designed to interlock at the processing plant. The remaining pipe rack modules are expected to arrive by mid-year, with first cable pulls on the module pipe racks targeted to commence in spring 2026.
Commissioning of the high voltage power line is targeted for Q2 2026. All main concrete work required on site is expected to be completed in Q3 2026. Early commissioning of individual processing plants is expected to commence in Q4 2026, as is the completion of upgrades to six regional substations and switching stations designed to provide reliable grid power from the local electric utility cooperative.
“Thacker Pass represents a unique opportunity to build a secure, resilient North American lithium supply chain. We value our partnership with the federal government and the support of local, state and federal leaders who share our commitment to strengthening America’s energy future.”
— Jonathan Evans, President and CEO, Lithium Americas Corp.
The company continues to target mechanical completion of the Phase 1 processing plant in late 2027, with production ramp-up through 2028. Evans noted that lithium market conditions are strengthening as the project approaches its commissioning window, positioning Thacker Pass to come online at an advantageous time in the market cycle.
About Thacker Pass
Thacker Pass is located in Humboldt County, northern Nevada, and is owned by a joint venture between Lithium Americas (holding a 62% interest) and General Motors Holdings LLC (holding a 38% interest). Phase 1 is designed for nominal production capacity of 40,000 tonnes per year of battery-quality lithium carbonate.
The project hosts the largest known measured lithium resource (Measured and Indicated) and reserve (Proven and Probable) in the world. The company’s NI 43-101 Technical Report, effective December 31, 2024, underpins the project’s total Phase 1 capital cost estimate of $2.93 billion over the full construction period.
Battery-Quality Lithium Carbonate
Battery-quality (or battery-grade) lithium carbonate is a highly purified form of lithium compound used as a precursor in the cathode materials of lithium-ion batteries. It must meet strict purity thresholds — typically above 99.5% Li₂CO₃ — to be suitable for electric vehicle and energy storage battery manufacturing. Domestic production capacity in the United States is currently minimal, making projects like Thacker Pass strategically significant for US battery supply chain security.
Lithium Americas is listed on the Toronto Stock Exchange and New York Stock Exchange under the symbol LAC.