Lithium Americas Provides Thacker Pass Project Update

This is a non-earnings project update. All capex figures below are Thacker Pass Phase 1 project-level figures unless stated. Full Q3 2026 results are not in this release; they are due November 12, 2026, and the financial information in this release is preliminary and unaudited.

• Lithium Americas provided a construction and definitive capital cost update for Thacker Pass Phase 1.
• Mechanical completion remains targeted for late 2027, with ramp-up through 2028 and nominal capacity of 40,000 tonnes per year of battery-grade lithium carbonate.
• The definitive capex estimate is now $3.83 billion including contingency, up from the prior $2.93 billion. That is an increase of about $900 million, or roughly 31%.
• The main drivers sum to about $895 million: labor install rates for piping, steel and equipment +$245 million; craft labor wages/compensation +$150 million; EPCM/contractor staff wages +$150 million; additional contingency +$150 million; EPCM/contractor staffing levels +$100 million; tariff and logistics +$100 million.
• Tariff exposure is now estimated at about $60 million, down from the prior $80 million to $100 million range, but this is more than offset by labor, logistics and contractor cost inflation.
• The incremental funding requirement is estimated at about $995 million: $895 million of incremental capex, $58 million of net increases to the DOE Sustaining Capex Reserve Account, and $42 million of other net increases.
• The company frames the funding as $650 million of contributions from Lithium Americas to the Thacker Pass JV and $315 million from DOE Loan reserve accounts, with an OWCA 3 amendment reducing the Sustaining Capex Reserve requirement by about $30 million during and after ramp-up.
• The company says these contributions will increase Lithium Americas’ ownership percentage in the JV, but the related implications for JV interests are still being finalized with DOE and GM.
• 2026 capex guidance was raised to $1.7 billion to $2.0 billion from the prior $1.3 billion to $1.6 billion. Peak capex is expected in 2026.
• Construction progress as of September 30, 2026: 4.7 million work hours without a serious injury or lost-time incident; about 1,900 personnel on site, including over 1,600 craft workers, rising to about 2,200 by year-end 2026; detailed engineering completed; procurement over 90% complete; over 80% of third-party contract value committed and over 50% incurred; all major structural steel delivered by end-August 2026; 80% of required fabricated piping in transit or delivered by end-October 2026.
• Liquidity as of September 30, 2026 was about $1.3 billion of total cash and restricted cash, including $359.5 million at the JV. Cumulative DOE Loan advances were $1.448 billion. The Yorkville debentures had $150 million issued, with up to $25 million additional available. The March 2026 ATM had $175.7 million of capacity remaining. The company also retains an option for up to $30 million of additional Orion notes.

The release is Material - Negative.

• The definitive capex estimate is a major reset, not a minor variance. The increase from $2.93 billion to $3.83 billion is about $900 million, or roughly 31%. Capex per annual tonne of Phase 1 capacity rises from about $73,250/t to about $95,750/t using the 40,000 t/y design capacity.
• The incremental funding requirement of about $995 million is roughly equal to the company’s entire market capitalization at the latest close. The $650 million Lithium Americas JV contribution alone is about two-thirds of current market cap. This is a large financing ask relative to the equity base.
• The funding plan is described as anticipated and expected, not fully closed. The release says the company is still working with DOE and GM to finalize the implications for JV interest holdings. That leaves execution, dilution and ownership uncertainty.
• The headline liquidity number is not the same as unrestricted parent cash. The $1.3 billion includes restricted cash and $359.5 million at the JV. The company must fund a $650 million contribution while also carrying corporate costs and peak construction spending.
• The schedule is unchanged, which is the main offset. Mechanical completion remains late 2027 and ramp-up through 2028. But the market is being asked to absorb a much higher capital intensity with no change in the production start date.
• The cost breakdown is heavily labor-driven. Labor install rates, craft wages, EPCM staffing and contractor wages account for $645 million of the increase. Those are less controllable than equipment tariffs and can persist if regional labor competition remains tight.
• Tariff exposure was reduced to about $60 million from the prior $80 million to $100 million range. That is a positive data point, but it is small relative to the total overrun and does not change the funding gap.
• The release does not provide updated NPV, IRR, peak funding or year-by-year cash flow. The provided investor presentation also does not include NPV or IRR. The return impact of the higher capex therefore cannot be quantified from the provided materials.
• The stock closed at $2.69 on November 10, 2026, near its 52-week low and before this release. The release is likely to pressure the shares further unless the funding plan is quickly de-risked.

• Lithium Americas Corp. is a pre-revenue lithium developer listed on the TSX and NYSE under LAC. Its flagship asset is the Thacker Pass lithium project in Humboldt County, northern Nevada, within the McDermitt Caldera.
• Phase 1 is designed for nominal 40,000 tonnes per year of battery-grade lithium carbonate. Mechanical completion is targeted for late 2027, ramp-up through 2028, and first full production year in 2029.
• Thacker Pass is owned by a JV between Lithium Americas (62%) and General Motors Holdings LLC (38%). The company has said the JV structure may change as the additional $650 million contribution is finalized.
• The project is permitted and reached final investment decision in April 2025. It is in major construction.
• Mineral reserves: 1,056.7 Mt at 2,540 ppm Li, containing about 14.3 Mt LCE. Measured and indicated resources: 3,786.0 Mt at 2,230 ppm Li, containing about 44.5 Mt LCE. The presentation describes Thacker Pass as hosting the largest known measured lithium resource in the world.
• Mine life is estimated at 85 years. C1 operating cost is shown as $6,238/t LCE for years 1-25, and AISC as $7,508/t LCE.
• The processing flowsheet is standard hydrometallurgical clay processing: dewatering, acid leaching, ion exchange, counter-current decantation and crystallization. The company says no novel equipment is required.
• Royalties: the provided materials do not disclose a specific royalty rate. The investor presentation’s AISC includes royalties, so Thacker Pass should not be assumed royalty-free. No royalty schedule is provided.
• Analyst coverage: the investor presentation states 3 Buy and 10 Hold ratings with an average target price of $5.59. That presentation is dated August 12, 2026 and predates the November 11 capex release. No independent analyst reports are provided.