In a Wednesday press release, Lithium Americas Corp, a Canadian mining firm, revealed that GM is committing $625 million to support the extraction of lithium carbonate, an essential material used in electric vehicle batteries.
Detroit-based automaker General Motors is actively investing in the domestic supply chain for electric vehicle batteries. The company is contributing USD 625 million to fund the mining of lithium carbonate through a cash-and-credit joint venture with Canadian mining company Lithium Americas Corp. This venture will support the development, construction, and operation of the Thacker Pass lithium mine in Humboldt County, Nevada, securing GM a 38% asset-level ownership stake.
The investment in Thacker Pass, recognised as the largest known lithium resource in North America, will facilitate a USD 2.3 billion conditional loan from the US Department of Energy for Lithium Americas. GM’s financial commitment includes USD 430 million in cash for Phase 1 of the mine’s construction and a USD 195 million letter of credit facility to serve as collateral for the DOE loan.
The partnership marks a significant strengthening of the relationship between GM and Lithium Americas, emphasizing their shared goal of establishing a robust domestic lithium supply chain. This move is part of GM’s broader strategy to manage battery cell costs, ensure supply chain resilience, deliver value to stakeholders, and create job opportunities, despite recently announcing a cut in its 2024 EV production targets due to slowing sales and softening consumer demand.
This investment follows another major deal in the lithium sector, where mining giant Rio Tinto acquired Arcadium Lithium for USD 6.7 billion, anticipating a rise in lithium demand over the next decade.
