LAC Secures $1.2 Billion Cash Position and DOE Support as Thacker Pass Project Ramps Up Construction
Construction Progress at Thacker Pass Reaches Key Milestones as Workforce Grows
In its first-quarter 2026 results, Lithium Americas (LAC) highlighted major forward steps at Thacker Pass, Nevada, the world’s largest known lithium deposit. With over 1,300 workers on site mid-May, and a peak force of 2,000 expected later in 2026, Phase 1 construction continues apace for a planned 2027 mechanical completion. LAC has completed more than 2.43 million workhours at the site without a serious incident, reflecting a strong safety track record.
Detailed engineering is now over 95% complete, procurement has exceeded 70%, and critical long-lead equipment—including transformers, reactors, compressors and heat exchangers—has begun arriving, despite international supply chain constraints. The Company reports 75% of structural steel for the project is either on site or in transit, with successful re-routing of shipments through the Port of Jeddah to mitigate Middle East disruptions.
Financial Position Strengthened by ATM Equity Program and DOE Loan Advances
As of March 31, 2026, LAC reported $1.21 billion in cash and restricted cash, with $529 million held at the Thacker Pass joint venture level. The company’s active 'at-the-market' (ATM) equity programs and a $432 million advance from the U.S. Department of Energy (DOE) further boosted available capital, supporting ongoing and future construction milestones.
Recent funding highlights include:
- Completion of the November 2025 ATM program, raising $246.7 million at an average share price of $5.78. In Q1 2026 alone, $189.7 million was raised at $5.92 per share.
- A new ATM program launched in March 2026, with $11.2 million raised post-quarter at $5.20 per share.
- DOE holds a warrant to purchase up to 18.3 million LAC shares (5% equity stake as of issuance); a parallel warrant entitles DOE to 5% of the JV non-voting units.
| Selected Financials (US$ millions) | Q1 2026 | Q4 2025 |
|---|---|---|
| Cash & Restricted Cash | 1,207.6 | 905.6 |
| Total Assets | 3,112.7 | 2,579.0 |
| Total Long-Term Liabilities | 1,071.1 | 815.6 |
| Net Income (Loss) | 4.6 | (11.5) |
Capital Expenditure Plans Remain On Track Despite Tariff and Inflationary Pressures
As of Q1 2026, total capitalized costs reached $1.3 billion, with $1.1 billion counting toward the $2.93 billion capex estimate for Phase 1. For fiscal 2026, guidance remains at $1.3–$1.6 billion, balancing ongoing development with inflationary and tariff challenges. The company estimates that tariff exposure for Phase 1 construction could reach $80–$120 million, primarily incurred in 2026, but notes that 75% of the project’s cost structure is labor and services unaffected by tariffs.
| Capex Item (US$ millions) | Q1 2026 | Cumulative to Q1 2026 | FY26 Guidance |
|---|---|---|---|
| Thacker Pass Phase 1 Costs | 275.5 | 1,138.1 | 1,200 – 1,500 |
| Other Dev. Costs | 8.3 | 101.4 | 30 – 40 |
| Capitalized Interest | 10.7 | 37.7 | 45 – 55 |
| Total | 294.5 | 1,277.2 | 1,300 – 1,600 |
Strategic Partnerships and Federal Support Enhance American Lithium Supply Chain
LAC’s Thacker Pass is co-owned with General Motors (LAC 62%, GM 38%) and supported by a $2.23 billion DOE loan—one of the largest single project loans in critical minerals in U.S. history. Recent site visits by U.S. Senators and the U.S. Department of Energy highlight the project’s importance to domestic energy independence, supply chain reliability, and job creation. Once operational, Phase 1 will target 40,000 tonnes per year of battery-quality lithium carbonate production.
Bottom Line: LAC Positions Thacker Pass as a Strategic Asset Amid Robust Financials and Construction Progress
Despite broader lithium market volatility and a recent stock pullback, Lithium Americas continues to demonstrate execution strength—delivering on construction, maintaining ample liquidity, and securing government and industry partnerships. Investors tracking the American battery material story may want to monitor upcoming definitive capital estimate updates, as well as continued progress on equipment delivery and further construction milestones as the Thacker Pass project advances toward its late 2027 completion target.
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