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Will Lithium Americas' Supply Chain Keep Thacker Pass on Track?

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Key Takeaways

  • LAC advances Thacker Pass construction with long-term agreements securing key equipment and services.
  • About $430 million is committed, with major long-lead equipment and materials set to arrive in early 2026.
  • A diversified supply chain aids delivery, while 75% labor and services spending helps limit tariff impact.

Lithium Americas Corp. (LAC - Free Report) is steadily advancing construction activities at its Thacker Pass project, backed by a series of long-term purchase agreements that secure critical equipment, infrastructure and services. These agreements cover everything from long-lead processing equipment to essential development and mining services and reflect the company’s push to keep the project on track.

As of Sept. 30, 2025, LAC has already committed approximately $430 million toward these efforts. A significant wave of progress is expected in early 2026, when major long-lead equipment, along with a substantial portion of construction materials, is scheduled to arrive either directly at the Thacker Pass site or at the fabrication yard in Winnemucca. 

LAC is sourcing these materials from Canada, China, India, the UAE, Turkey and several European Union countries. While this diversified supply chain helps ensure timely delivery, it also exposes the company to possible tariffs. Recognizing this risk, Lithium Americas has been proactively working to limit any potential impact on the project’s construction timeline and budget. The company has limited its exposure to tariffs as roughly 75% of its total capital project cost is tied to labor, contractors and services, factors that are not directly affected by tariffs.

LAC’s Price Performance, Valuation & Estimates

Lithium Americas’ shares have gained 64% compared with the Zacks Mining - Miscellaneous industry’s growth of 19.4% year to date. LAC’s peers, BHP Group Limited (BHP - Free Report) and TMC the metals company Inc. (TMC - Free Report) , have gained 8.4% and 376.8%, respectively, in the same period.
 

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From a valuation standpoint, Lithium Americas is trading at a forward price-to-earnings (P/E) ratio of negative 13.24X against the industry’s average of 15.56X. LAC is trading above the TMC’s P/E ratio and below that of BHP. Notably, BHP and TMC are trading at 13.41X and negative 17.85X, respectively.

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The Zacks Consensus Estimate for LAC’s 2025 and 2026 loss per share has widened 37 cents and 13 cents, respectively, in the past 30 days.

Zacks Investment Research
Image Source: Zacks Investment Research

 
LAC carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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