General Motors founds joint venture for lithium production
The transaction replaces a January 2023 agreement between the two companies. At that time, GM promised a total investment of 650 million dollars. 320 million dollars has already been paid as the first tranche. The new contract replaces the agreement for a second tranche of $330 million and secures the aforementioned fresh $625 million for Lithium Americas.
The Thacker Pass project is the largest known lithium source in the US and the third largest in the world. Initial work on the site near the Nevada-Oregon border began in March 2023, shortly after the first GM investment. One year later, the US Department of Energy also pledged a loan of 2.3 billion US dollars. The aim is to initially produce 40,000 tonnes of battery-grade lithium carbonate per year.
Under the new investment agreement, GM will acquire a 38 per cent stake in Thacker Pass to support the construction of Phase 1. General Motors will also have exclusive access to this. It will enter into a 20-year offtake agreement for up to 38 per cent of Thacker Pass Phase 2 production volumes and retain its right of first offer for the remaining Phase 2 volumes. The manufacturer wants to secure material for one million electric car batteries per year. Deliveries are expected to begin in the second half of 2026.
“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.”
“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, SVP, Global Purchasing and Supply Chain. “Sourcing critical EV raw materials, like lithium, from suppliers in the US, is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”
According to an update from Lithium Americas, detailed engineering for the mine continues to progress and is 40 per cent complete. Site preparation for the main earthworks has also been completed, and the process plant area is currently being excavated in preparation for concrete placement, which is expected to begin in mid-2025. All major equipment has also been ordered.
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