Lithium Americas raises Thacker Pass cost estimate by 31%

Nov 11 (Reuters) - Lithium Americas LAC.TO on Wednesday raised the estimated cost of Phase 1 of its Thacker Pass lithium project in Nevada by 31% to $3.83 billion, citing higher labor, construction and logistics costs.

The revised estimate adds $895 million in incremental capital expenditure and increases the project's funding requirement by about $995 million, the company said.

Here are more details:

• Lithium Americas said it expects to cover the higher funding requirement through contributions and available Department of Energy loan reserves

• Tariff and logistics costs accounted for about $100 million of the increase, while higher labor installation rates for piping, steel and equipment added $245 million

• The company expects to spend $1.7 billion to $2.0 billion on Phase 1 this year, up from its prior estimate of $1.3 billion to $1.6 billion

• Phase 1 is expected to ramp up to commercial production in 2028 and produce a nominal 40,000 tons annually at full capacity

• Thacker Pass is a joint venture between Lithium Americas and US automaker General Motors GM.N and holds enough lithium to build 1 million electric vehicles annually

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