Two November 11 2026 releases from opposite ends of the Western critical minerals effort tell the same story from different angles. In Nevada, the most advanced US lithium project just got 31% more expensive. In Brazil, an exploration company reported its strongest heavy rare earth grades yet. One is a build that costs more than planned. The other is a discovery years away from a mine.
Lithium: Thacker Pass, Nevada
What happened. Lithium Americas (NYSE and TSX: LAC) completed its definitive capital estimate for Thacker Pass Phase 1 at $3.83 billion including contingency, up from $2.93 billion. The company lifted its 2026 capital spending range to $1.7 billion to $2.0 billion, from $1.3 billion to $1.6 billion, and kept its target of mechanical completion in late 2027.
Where the $900 million went. About $245 million came from labor installation rates for piping, steel and equipment. Craft wage inflation added $150 million. Engineering, procurement and construction management staffing added $100 million, and wage increases for those staff another $150 million. Tariffs and logistics added about $100 million. Extra contingency took $150 million.
Funding. Lithium Americas puts the incremental need at about $995 million and says it will be covered by its own contributions, reserves under its Department of Energy loan and changes to reserve requirements. The project is a joint venture with General Motors, which also holds a 20-year offtake. The DOE took a 5% stake in the company and a separate 5% in the project in 2025. Phase 1 is designed for 40,000 tonnes a year of battery-grade lithium carbonate.
Assessment. Most of the overrun is labor, not materials. Building a first-of-its-kind clay-to-lithium plant in rural Nevada means competing for skilled trades with data centers and fabs that pay well and want the same people. Washington is now a shareholder, a lender and the main political sponsor. That makes cancellation unlikely and further government support likely if costs move again.
Rare earths: Homer-A, Goiás, Brazil
What happened. Rare Earths Americas (NYSE American: REA) said the mineralized area at its Homer-A target in Brazil’s Goiás Alkaline Province has grown to about 3.5 square kilometers, more than 60% larger than in September. It now runs about 4.3 km long and 1.7 km wide, and is open in all directions. Nineteen of the 20 holes assayed in the main anomaly hit mineralization above the 1,000 ppm cut-off.
The heavy rare earth signal. The southeastern margin shows the best heavy rare earth proportions so far. Hole RC-TGA-0019A returned 8 m at 2,173 ppm total rare earth oxides plus scandium, with 53.1% heavy rare earths. A one-meter peak hit 6,452 ppm at 76.9% heavy rare earths and 8.7% dysprosium plus terbium. The best DyTb peak, 562 ppm, compares with 347 ppm reported in September.
Status. These are exploration results. About 80% of a 15,000 m drilling program is done, but only 22 holes have been assayed and more than 100 are pending. A maiden resource estimate is targeted for 2027. Metallurgical testing has only started, and the company says economic viability isn’t established.
Assessment. Dysprosium and terbium are the rare earths that keep magnets working at high temperature in motors and missiles. China dominates their supply and has restricted their export since April 2025. Any deposit outside China with real heavy rare earth content will draw attention from US and allied buyers. The open question at Homer-A is processing. Clay-hosted heavy rare earths are easy to dig and hard to separate, and separation capacity is where China’s grip is tightest.
Watch
Lithium Americas’ third-quarter results and any change to the DOE loan terms. Homer-A assays from the 100-plus pending holes and the first metallurgical recoveries. Both will say more than the headlines did.