Lithium Americas down 10% in two days after Q1 earnings, flagging higher Thacker Pass capex

[Lithium abstract concept]
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Lithium Americas (LAC [https://seekingalpha.com/symbol/LAC]) shares have dropped a combined 10% in the two days since reporting breakeven Q1 GAAP earnings [https://seekingalpha.com/news/4592782-lithium-americas-gaap-eps-of-000-beats-by-006-continues-to-target-2026-capex-outlook] Thursday and warning that U.S. tariffs on steel, inflation linked to the Iran war, and shipping disruptions in the Strait of Hormuz could add $80M-$120M to construction costs at its Thacker Pass lithium project in Nevada.

Lithium Americas (LAC [https://seekingalpha.com/symbol/LAC]) still expects Phase 1 spending this year in the $1.3B-$1.6B range as construction advances toward an anticipated mechanical startup in late 2027, but it flagged that the original $2.93B total Phase 1 capital estimate did not include tariffs, fuel price hikes, or broader inflationary pressures tied to the war, Mining.com reported.

The company said more than 75% of structural steel for the project, sourced from the United Arab Emirates, is either in transit or already at site after shipments were rerouted through Saudi Arabia’s Jeddah port to avoid regional disruptions, and long-lead equipment, including transformers, reactors, and steam turbine components, is also arriving.

Upon completion, Thacker Pass is expected to produce 40K metric tons/year of lithium carbonate, enough for ~800K electric vehicles and well above output from Albemarle's Silver Peak mine, currently the only operating lithium brine mine in the U.S.

MORE ON LITHIUM AMERICAS

* Lithium Americas: Where Is The Future Of U.S. Lithium Headed? [https://seekingalpha.com/article/4878759-lithium-americas-where-is-the-future-of-us-lithium-headed]
* Lithium Americas: Government Support Comes At Equity's Expense [https://seekingalpha.com/article/4868504-lithium-americas-government-support-comes-at-equitys-expense]
* Lithium Americas: Full Speed Ahead [https://seekingalpha.com/article/4847306-lithium-americas-stock-q3-full-speed-ahead]