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    Thacker Pass tariff hit: capex and schedule implications for lithium project teams

    May 16, 2026|

    Reviewed by Tom Sullivan

    Thacker Pass tariff hit: capex and schedule implications for lithium project teams

    First reported on MINING.com

    30 Second Briefing

    US steel tariffs, Iran-linked inflation and shipping disruption around the Strait of Hormuz are expected to add US$80–120 million to construction costs at Lithium Americas’ Thacker Pass lithium project in Nevada, on top of the original US$2.93 billion Phase 1 capex. Detailed engineering is nearing completion, procurement has passed 70%, and more than 75% of structural steel from the UAE is already in transit or on site after rerouting via Saudi Arabia’s Port of Jeddah. Construction spend of US$1.3–1.6 billion is planned for 2026, targeting 40,000 t/y lithium carbonate from late 2027.

    Technical Brief

    • Structural steel is sourced from the United Arab Emirates and rerouted via Saudi Arabia’s Port of Jeddah.
    • More than 75% of this structural steel is already on site or in transit despite shipping disruptions.
    • Long-lead items now arriving include transformers, reactors and steam turbine components for the hydrometallurgical plant.
    • As of 31 March, US$1.3 billion has been capitalised, with US$1.1 billion directly against total mine capex.
    • On-site workforce exceeds 1,300, with peak construction manpower forecast to surpass 2,000 personnel.
    • A definitive capital estimate is being prepared to incorporate tariffs, fuel escalation, labour rates and updated procurement.
    • US government and General Motors each hold 5% equity stakes in both Lithium Americas and the Thacker Pass project.

    Our Take

    With US$1.3 billion already capitalised and US$1.2 billion in cash and restricted cash (including US$432 million advanced from the DOE loan), Lithium Americas has unusually high pre-production liquidity for a single-asset US lithium developer in our coverage, which should help absorb tariff shocks without immediate equity dilution.

    Amnesty International’s recent focus on Nevada lithium projects, including Thacker Pass, signals that alongside tariff exposure, Lithium Americas faces a parallel non-technical risk track on social licence that could influence permitting timelines and conditions into the late‑2027/2028 ramp-up window.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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