General Motors has formed a joint venture with Lithium Americas Corp. to develop a lithium carbonate mining operation in Nevada called Thacker Pass. GM will provide $625 million to support the project, as part of its efforts to secure raw materials for electric vehicle production. Lithium is a crucial component for EV batteries, and GM’s investment aims to help them grow their EV business profitably.
The joint venture will give GM a 38% interest in Thacker Pass, with investments totaling $330 million in cash upon closing, $100 million at a later phase decision, and a $195 million letter of credit. This partnership strengthens GM’s supply chain for EV materials, aiming to manage battery costs, create value for customers and investors, and create domestic jobs.
Shares of Lithium Americas rose significantly following the announcement, reflecting market confidence in the joint venture’s potential. This investment is in addition to GM’s $320 million investment in Lithium Americas earlier in February 2023, and the companies are working together to develop a robust domestic lithium supply chain.
The partnership with Lithium Americas aligns with GM’s broader strategy to transition towards all-electric vehicles and meet federal requirements for EV production and battery manufacturing. By sourcing critical materials such as lithium domestically, GM aims to achieve its goals for sustainable and profitable growth in the EV market.
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