Lithium Americas has released a comprehensive update on its flagship Thacker Pass project in Nevada, highlighting steady progress in major construction activities throughout 2025 and providing detailed 2026 capital expenditure guidance ranging from $1.3 billion to $1.6 billion for Phase 1. The company targets mechanical completion of the processing plant in late 2027, with initial production to follow and full ramp-up through 2028. Backed by strong financing from the U.S. Department of Energy loan, General Motors joint venture, and other partners, the project positions the United States to significantly boost domestic lithium carbonate output amid improving market conditions for battery materials.
Thacker Pass Construction Advances Toward Late-2027 Mechanical Completion
Lithium Americas continues to make solid headway on Thacker Pass Phase 1, the largest lithium development currently under construction in the United States. Located in Humboldt County, Nevada, the project aims to produce 40,000 tonnes per year of battery-quality lithium carbonate, a critical component for electric vehicle batteries and energy storage systems.
During the year ended December 31, 2025, the company focused on advancing major construction elements. Key achievements included the installation of first steel in the processing plant area earlier in the year, the relocation of initial residents into the on-site Workforce Hub, and ongoing procurement and site preparation activities. Long-lead items remain on schedule for delivery starting in the first quarter of 2026, supporting the overall timeline. The project benefits from a robust project labor agreement that ensures access to skilled contractors, helping maintain momentum as workforce levels are expected to peak at approximately 1,800 personnel during 2026.
Financing remains firmly in place following several pivotal developments. The U.S. Department of Energy provided the first draw of $435 million under the amended $2.23 billion Advanced Technology Vehicles Manufacturing loan in late 2025, accelerating major construction. This low-cost financing, priced at the applicable long-dated U.S. Treasury rate with zero spread, includes provisions for debt service deferral in the early years and additional reserves to enhance cash flow flexibility. The joint venture with General Motors, which holds a significant stake in the project, continues to provide both capital and a long-term offtake commitment for a substantial portion of Phase 1 production. Recent amendments to the offtake agreement allow greater flexibility to secure commitments from additional third-party buyers for volumes not allocated to GM, optimizing revenue potential.
The company has also expanded its operations and business readiness team to prepare for the upcoming commissioning and ramp-up phases. This includes building capabilities for wet commissioning, initial production, and eventual full commercial operations.
2026 Capital Expenditure Guidance Reflects Peak Construction Intensity
For fiscal year 2026, Lithium Americas has outlined a targeted capital expenditure range of $1.3 billion to $1.6 billion dedicated to Thacker Pass Phase 1. This guidance captures the heightened spending required during peak construction and includes capitalized interest on the DOE loan.
The breakdown is as follows:
Thacker Pass Phase 1 construction costs: $1.2 billion to $1.5 billion
Other capitalized development costs for Thacker Pass: $30 million to $40 million
Capitalized interest on the DOE loan: $45 million to $55 million
Total 2026 Capex Guidance : $1.3 billion to $1.6 billion
These figures exclude approximately $8 million in community contributions that are expensed under U.S. GAAP accounting rules, though such items were factored into the overall $2.93 billion capital estimate detailed in the most recent NI 43-101 Technical Report effective December 31, 2024. The guidance underscores the project’s transition into its most capital-intensive phase, with funds directed toward civil works, structural steel erection, equipment installation, and infrastructure development at the site.
Thacker Pass holds the distinction of hosting the world’s largest known measured and indicated lithium resource, along with proven and probable reserves that support long-term production potential. Phase 1 represents the initial 40,000 tonnes per year facility, including an integrated 2,250 tonnes per day sulfuric acid plant. Future expansions could add multiple phases, potentially scaling output significantly beyond the initial capacity.
Strategic Positioning in a Strengthening Lithium Market
As construction progresses, lithium market fundamentals show signs of recovery and strengthening. Demand for battery-grade lithium remains driven by the ongoing electrification of transportation and growth in renewable energy storage. Thacker Pass is poised to deliver U.S.-produced lithium carbonate just as these trends accelerate, reducing reliance on foreign suppliers and enhancing North American supply chain security.
The project’s vertical integration—from mining to processing—combined with strong partnerships, positions Lithium Americas to capture value as the facility comes online. With all major legal and regulatory hurdles resolved, the focus remains squarely on execution to meet the late-2027 mechanical completion target.