General Motors (GM) has entered into a $625 million joint venture with Lithium Americas Corp. to develop and operate a lithium carbonate mining project at Thacker Pass in Humboldt County, Nevada. Lithium, a crucial component for electric vehicle (EV) batteries, is essential to GM’s efforts to grow its all-electric vehicle business and meet federal requirements for sourcing materials domestically. This partnership marks a strategic shift from GM’s previously announced equity investment in the Canadian-based mining company.
The joint venture will see GM contributing $330 million in cash upon closing, $100 million at the final investment decision for a project phase, and $195 million through a letter of credit facility before drawing on a $2.3 billion Department of Energy loan. In return, GM will hold a 38% interest in Thacker Pass.
Securing U.S.-sourced lithium is vital to GM’s strategy to control battery costs, improve profitability, and qualify for government incentives related to domestic EV production. “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,” said Jeff Morrison, GM’s senior vice president of global purchasing and supply chain.
The collaboration also strengthens GM’s relationship with Lithium Americas, following a $320 million investment made by GM in February 2023, which included the acquisition of 15 million common shares of the mining company. This joint venture replaces GM’s previously planned equity investment in Lithium Americas and builds on the automaker’s $330 million investment, which was delayed in August to explore alternative investment structures.
Lithium Americas CEO Jonathan Evans expressed optimism about the partnership, stating that it advances their shared goal of developing a robust domestic lithium supply chain, helping drive the future of EV production in the U.S.
