US-Backed Lithium Americas Hit by Rising Costs on Trump Tariffs

Lithium Americas Corp.’s Nevada mine was supposed to be the US solution to curbing dependence on China for a critical mineral for batteries. Instead, the company is getting hammered by the Trump administration’s tariffs.

The company’s shares touched a record low on Wednesday after the miner raised the cost of building Thacker Pass, its flagship lithium mine in Nevada, by almost $900 million, blaming the increase on the levies, as well as higher labor costs and logistics expenses. The project is a key part of the White House’s agenda to reduce US dependence on foreign mineral supplies and backed by a $2.3 billion loan from the federal government, made under former President Joe Biden that the current administration sought to convert into an equity stake.

The first phase of construction on the project is now projected to cost $3.83 billion, up from a previous estimate of $2.93 billion, according to a statement Wednesday. Shares of Lithium Americas fell as much as 10% to an all-time low of $1.70 before paring the loss to 7.7% in New York trading.

Tariffs raised the cost to order equipment from outside the US, the company said. Some of the cost increase also stems from higher-than-expected labor costs for piping, steel and equipment as competition for skilled workers strains availability.

TD analyst Craig Hutchison said the higher costs will weigh on Thacker Pass’ value “at a time when lithium prices have weakened considerably over the last few months.”

Mining companies have long struggled to build new projects in the US as a result of costs, permitting and legal action from mining opponents. President Donald Trump’s tariff-driven trade war and increasing competition from energy-intensive projects like data centers have only exacerbated those challenges. The ballooning price tag also arrives against a difficult backdrop for lithium producers. The metal has fallen by more than half from a May peak as investors brace for weaker battery-demand growth and additional supply, potentially squeezing the economics of new mines.

Lithium Americas stock has slumped around 60% this year. The company’s struggles exemplify the challenge facing miners and the US government as they try to build a domestic supply chain for lithium and other critical minerals. The US has some of the world’s largest deposits of lithium, but produces less than 1% of global supply, leaving automakers and battery manufacturers heavily reliant on overseas sources. China dominates the processing of the metal and production of lithium-ion batteries.

The giant deposit in northern Nevada is expected to produce 40,000 metric tons a year of battery-grade lithium carbonate once its first phase reaches full capacity, enough to dramatically expand US production and make it the largest lithium mine in North America. Production is supposed to ramp up in 2028.

Its strategic importance has made the mine an unusual partnership between a small mining company, one of America’s largest automakers and the federal government. General Motors Co. owns a portion of the venture after committing $625 million to Thacker Pass.

The company now estimates the revised budget and other changes create an additional funding requirement of about $995 million. It said it expects $650 million to come from its own contributions to Thacker Pass, while another $315 million will come from accounts funded under the Department of Energy loan.

Lithium Americas said Wednesday that the higher price tag will not change the construction schedule, which aims to begin production in 2028.

©2026 Bloomberg L.P.

This article was generated from an automated news agency feed without modifications to text.

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