General Motors has entered into a joint venture with Lithium Americas Corp. to develop a lithium carbonate mining operation called Thacker Pass in Nevada. GM will provide $625 million in cash and credit to the Canadian mining company. Lithium is a key component for batteries that power electric vehicles, making it essential for GM to secure a domestic supply chain for raw materials.
The agreement allows GM to strengthen its EV business by managing battery cell costs, delivering value to customers and investors, and creating jobs. This move aligns with GM’s goal of developing a resilient EV material supply chain and meeting federal requirements for producing and selling electric vehicles.
The joint venture will give GM a 38% interest in the Thacker Pass project, with investments totaling $625 million in cash and credit. This includes a $330 million cash contribution upon closing, $100 million at a “final investment decision” phase, and a $195 million letter of credit facility. The joint venture complements GM’s previous $320 million investment in Lithium Americas in February 2023.
Lithium Americas CEO Jonathan Evans expressed confidence in the strengthened relationship with GM, highlighting the mutual goal of developing a robust domestic lithium supply chain for advancing the Thacker Pass project. The announcement led to a significant increase in Lithium Americas’ stock price, reflecting positive market sentiment towards the joint venture.
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