Summary
- GM enters new investment agreement with Lithium Americas for Thacker Pass project in Nevada
- GM to provide $430 million in cash funding and $195 million letter of credit for Phase 1 construction
- GM financing can support reserve account requirements under a $2.3 billion DOE loan
- GM will have 38% interest in joint venture and 20-year offtake agreement for 38% of Phase 2 production
- Detailed engineering at Thacker Pass progressing, with 40% design complete and site preparation underway
Article
General Motors (GM) has entered into a new investment agreement with Lithium Americas to establish a joint venture (JV) for the Thacker Pass lithium carbonate project in Nevada. GM will provide $430 million in direct cash funding and a $195 million letter of credit facility to support Phase 1 of the project, alongside a conditional commitment for a $2.3 billion US Department of Energy (DOE) loan. This JV transaction replaces a previous $330 million equity investment commitment from GM in Lithium Americas.
After the transaction is closed, GM will have a 38% interest in the JV and will enter into a 20-year offtake agreement for up to 38% of production volumes from Thacker Pass Phase 2. The company will also retain its right of first offer on the remaining balance of Phase 2 volumes. Detailed engineering work at Thacker Pass is progressing well ahead of issuing a full notice to proceed, with approximately 40% of the design complete. Site preparation for major earthworks has been finished, and work on the process plant area is underway in preparation for concrete placement.
The partnership between GM and Lithium Americas is a significant step towards developing a resilient electric vehicle (EV) material supply chain. By sourcing critical EV raw materials like lithium from suppliers in the US, GM aims to better manage battery cell costs, deliver value to customers and investors, and create more jobs. The Thacker Pass project is crucial in achieving these goals, and GM’s investment and involvement in the JV demonstrate their commitment to sustainable and environmentally friendly practices in the EV industry.
With the funding and support provided by GM, Lithium Americas can continue to advance the Thacker Pass project, which plays a vital role in supplying key raw materials for EV battery production. The JV’s progress in developing the project is expected to have a positive impact on GM’s EV initiatives and overall goals in building a reliable and cost-effective supply chain for EV materials. By investing in domestic suppliers and projects like Thacker Pass, GM is taking proactive steps to secure its position in the growing EV market while contributing to economic growth and job creation in the US.
Overall, the collaboration between GM and Lithium Americas in establishing the JV for the Thacker Pass lithium project demonstrates a strong commitment to sustainable practices and the development of a robust EV supply chain. GM’s investment and participation in the project highlight the company’s dedication to sourcing critical raw materials domestically and supporting the growth of the EV industry in the US. The progress made at Thacker Pass and the future plans for the project signify a significant step towards achieving GM’s goals of cost-effective EV battery production, value delivery to stakeholders, and job creation in the US.
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