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A developer of the Thacker Pass lithium project in Nevada, the largest known lithium resource in the United States, held with General Motors as a joint-venture partner. The company split off its Argentine operations in 2023 to focus on North America, where its mine sits inside an ancient volcanic caldera the local Paiute call "Rotten Moon."
Thacker Pass construction spending hit a quarterly record of $483.6M, bringing cumulative costs to $1.8B.
Thacker Pass construction spending accelerated to a new quarterly record. Capitalized costs reached $483.6 million in Q2 2026, pushing cumulative spending to $1.8 billion, while was $1.7 million, a swing from a $13.2 million loss a year ago, driven by a non-cash derivative gain. The project is fully funded through late-2027 production, but a new $175 million signals additional financing needs.
Key takeaways
Capitalized construction costs for Thacker Pass Phase 1 reached $483.6 million in Q2 2026, the highest quarterly spend to date, bringing cumulative costs to $1.8 billion against a $2.93 billion total estimate.
attributable to LAC stockholders was $1.7 million, compared to a $13.2 million loss in Q2 2025, primarily due to a $20.0 million non-cash gain on the fair value of the Orion convertible note and $13.3 million in other income.
Section summaries
Management's Discussion and Analysis
Thacker Pass construction progressed with $1.8B capitalized, while net income turned positive on non-cash gains and higher interest income.
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Thacker Pass Phase 1 construction capitalized $1.8B through Q2 2026, with $483.6M spent in the quarter, targeting $1.3B–$1.6B in total for fiscal 2026.
attributable to LAC stockholders was $1.7M in YTD Q2 2026 versus a $23.1M loss a year ago, driven by a $20.0M non-cash gain on the Orion Notes and $13.3M in other income.
Cash and restricted cash rose to $1.3 billion as of June 30, 2026, supported by $774 million in U.S. Department of Energy loan advances and $258.2 million in net at-the-market equity proceeds during the first half of 2026.
The company narrowed its estimated tariff exposure on steel, aluminum, and copper imports to $80–$100 million, primarily in 2026, and flagged additional cost pressures from Middle East conflict, U.S. logistics constraints, and a competitive skilled labor market.
After the quarter, the company entered a $175 million subordinated agreement with Yorkville, with $150 million to be issued at initial closing, adding a new source of financing and potential future .
All legal and regulatory proceedings remain resolved or dismissed, leaving no current adversarial matters involving the company or its permits.
What changed
The pace of quarterly capitalized construction costs rose to $483.6 million from $294.5 million in Q1 2026, keeping the company on track toward its $1.3–$1.6 billion 2026 target.
The estimated tariff exposure was narrowed to $80–$100 million from the $80–$120 million range given in Q1 2026, though it still has not been incorporated into the $2.93 billion capital cost estimate.
The company drew an additional $339 million on the DOE loan during the first half of 2026, bringing total draws to $774 million, after making its first $435 million draw in Q4 2025.
A new $175 million Yorkville was entered after the quarter, a financing vehicle not previously flagged, adding to the Orion notes and DOE warrants as sources of potential shareholder .
What to watch
Whether the quarterly construction spending rate continues near the $483.6 million Q2 2026 level, consistent with the $1.3–$1.6 billion full-year 2026 target.
Whether the $80–$100 million estimated tariff exposure is absorbed within the existing $2.93 billion budget or requires a revised capital cost estimate.
The terms and impact of the new $175 million Yorkville , including the conversion price and timing of the $150 million initial closing.
Movement in global lithium carbonate prices relative to the $24,000 per tonne long-term price used in the project's $8.7 billion after-tax NPV estimate.
General and administrative expenses rose to $26.2M in YTD Q2 2026 from $14.4M, reflecting increased hiring, , and professional fees to support expanded operations.
Cash and restricted cash reached $1.3B at June 30, 2026, supported by $774M in DOE Loan advances and $258.2M in net ATM equity proceeds during the first half of 2026.
The company estimates $80M–$100M in total tariff exposure, primarily in 2026, and flagged cost pressures from Middle East conflict, U.S. logistics constraints, and a competitive skilled labor market.
Subsequent to Q2 2026, the company entered a $175M subordinated convertible debenture agreement with Yorkville, with $150M to be issued at initial closing.
Quantitative and Qualitative Disclosures About Market Risk
The Company's exposure to market risk is described in Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk of the annual report on Form 10-K for the year ended December 31, 2025. The Company believes its exposure to market risk has not changed materially…
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The Company's exposure to market risk is described in Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk of the annual report on Form 10-K for the year ended December 31, 2025. The Company believes its exposure to market risk has not changed materially since then.
The Company is involved in various legal and administrative proceedings in the normal course of business, the ultimate resolutions of which, in the opinion of management, are not anticipated to have a material effect on the Company’s results of operations, liquidity or financial…
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The Company is involved in various legal and administrative proceedings in the normal course of business, the ultimate resolutions of which, in the opinion of management, are not anticipated to have a material effect on the Company’s results of operations, liquidity or financial condition.
The Company has resolved or secured judicial dismissal of all legal and regulatory actions and proceedings, which arose in the ordinary course of resource development. There are no current adversarial matters involving the Company or its regulatory authorizations.
Significant future financing needs for Thacker Pass could substantially dilute existing shareholders and impose restrictive debt covenants.
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The Company requires significant additional capital to develop and operate Thacker Pass, which may be raised through equity, convertible debt, project-level investments, or offtake and royalty arrangements.
Future equity issuances, including shares to GM, the US DOE, or upon conversion of the Orion Note, DOE warrants, and Yorkville Debentures, could materially dilute existing shareholders and depress the share price.
The Company has registered up to 43.7 million shares for resale by Orion and agreed to register shares underlying DOE warrants and up to 72.6 million shares for Yorkville, increasing potential selling pressure.
Any new indebtedness could restrict operational flexibility, require substantial cash flows for debt service, increase vulnerability to interest rate changes, and heighten default risk.