Lithium Americas Corp. (LAC) saw its shares decline in early trading Tuesday, reversing some of Monday's gains, after HSBC lowered its price target and maintained a Hold rating. The stock was trading near $4.95 at 10:00 a.m. ET, down from Monday's close of $5.25, with a session range of $4.77 to $5.06.
The move comes as investors refocus on the company's flagship Thacker Pass lithium project in northern Nevada, which is entering a critical phase of peak capital spending. HSBC cut its price target to $4.75 from $6.30 on April 27, reiterating a Hold stance, while Wedbush initiated coverage on April 20 with a Neutral rating and an $8 target.
Thacker Pass Faces New Scrutiny
Thacker Pass, backed by General Motors (GM) and the U.S. Department of Energy (DOE), is central to U.S. ambitions for a domestic battery-metal supply chain. The project is expected to require $1.3 billion to $1.6 billion in capital expenditures in 2026 for mine construction and processing plant development. However, concerns over construction delays, tariff exposure, and financing hurdles have resurfaced.
Lithium Americas has secured a $2.23 billion DOE loan for Phase 1, along with strategic investments from GM and Orion Resource Partners. The DOE also holds warrants that could give it up to a 5% equity stake in the company and a matching 5% economic interest in the Thacker Pass joint venture. GM owns 38% of the joint venture, with Lithium Americas holding the remaining 62%. GM has secured rights to purchase all lithium output from Phase 1 and a portion from Phase 2 for 20 years.
CEO Jonathan Evans highlighted swift progress at Thacker Pass in the company's March results release, reaffirming a late-2027 mechanical completion target and projecting a workforce of nearly 1,800 skilled craftspeople by late 2026. However, the company acknowledged that its 2026 cost outlook incorporates current and projected tariff exposure on equipment and materials from Canada, China, India, the UAE, Turkey, and the EU, with potential for further disruptions from trade policy changes.
Financial and Market Context
Lithium Americas ended 2025 with $905.6 million in cash and restricted cash, but reported a net loss of $86.3 million for the year, nearly double the $42.6 million loss in 2024. Management attributed the increase to higher staffing costs, professional fees, and expenses related to Thacker Pass, the DOE loan, and the GM joint venture. The company also has a $250 million at-the-market share offering in place, which could dilute existing shareholders if utilized.
Broader lithium stocks also declined, with Albemarle (ALB) falling about 2.8% and SQM (SQM) down roughly 1.0%, reflecting a cautious mood in the battery-metals sector. Lithium Americas' annual meeting is scheduled for June 22, with shareholders of record as of April 23.
The key question for investors remains whether Thacker Pass can deliver on its timeline and budget amid volatile lithium prices, shifting U.S. industrial policy, and evolving capital market conditions. The project's success is critical not only for Lithium Americas but also for the broader U.S. push to secure domestic supplies of critical minerals for electric vehicle batteries.
