GM to invest $625 million in mega US lithium project
GM signs JV with Canadian company Lithium Americas focused on a lithium carbonate mining operation in Nevada that holds enough of the battery metal to build 1 million electric vehicles annually.
General Motors (GM) has established a joint venture (JV) with Lithium Americas in which the automaker will supply USD 625 million in cash and credit to the Canadian mining company.
The deal, which involves the development, construction and operation of a lithium carbonate mining operation called Thacker Pass in Nevada’s Humboldt County, comes as US carmakers ramp up their output of EVs and hybrids and seek to reduce their reliance on battery-related materials from China.
Lithium is a critical component of EV batteries.
GM will acquire a 38% asset-level ownership stake in Thacker Pass for USD 625 million, which includes $430 million of direct cash funding to support the construction of Phase 1 and a USD 195 million letter of credit facility, according to a Reuters report, quoting Lithium Americas.
The new agreement replaces a delayed USD 330 million investment in August by both companies.
The Thacker Pass lithium project reportedly holds enough battery metal to build 1 million electric vehicles annually.
“We’re pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain,” Jeff Morrison, GM senior vice president of global purchasing and supply chain, said. “Sourcing critical EV raw materials, like lithium, from suppliers in the U.S., is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”
“Our relationship with GM has been significantly strengthened with this joint venture as we continue to pursue a mutual goal to develop a robust domestic lithium supply chain by advancing the development of Thacker Pass,” said Jonathan Evans, President and CEO of Lithium Americas. “Today’s joint venture announcement is a win-win for GM and Lithium Americas. GM’s JV Investment demonstrates their continued support and helps us to unlock the previously announced $2.3 billion DOE Loan. We will be working closely with GM to advance towards the final investment decision, which we are targeting by the end of the year.”
GM is also investing USD 10 million into Forge Nano. The automaker will use the material science company’s battery material coating on EV cells to enhance performance and lifetime.
