Summary
- GM is investing nearly $1 billion in a Nevada lithium mine and operator to secure a long-term supply of a critical mineral for electric vehicle batteries
- The joint venture with Lithium Americas includes a $625 million contribution from GM, making it the largest U.S. automaker investment in a lithium carbonate project
- GM will receive materials produced from the Thacker Pass project in Nevada and has agreed to another 20-year offtake agreement for future production phases
- The investment comes as GM looks to ramp up its EV plans, including cutting costs and boosting sales with next-generation batteries
- CEO Mary Barra has stated that GM is on track to produce around 200,000 EVs in North America this year with profitability expected this quarter.
Article
General Motors (GM) is significantly increasing its investment in a Nevada lithium mine operated by Lithium Americas (LAC) to almost $1 billion in order to secure a long-term supply of lithium, a critical mineral for electric vehicle batteries. This investment includes a $625 million contribution to a new joint venture with LAC, consisting of $430 million in cash and a $195 million letter of credit facility. In total, GM has invested about $945 million in the project. The joint venture, which marks the largest publicly announced investment by a U.S. automaker in a lithium carbonate project, will allow GM to receive the materials produced by the first phase of the Thacker Pass project in Nevada. Lithium Americas plans to produce 40,000 tonnes per year of battery-grade lithium carbonate in this phase, which is enough for around 1 million lithium iron phosphate batteries or 571,428 ternary lithium batteries.
Additionally, GM has entered into a 20-year offtake agreement to receive up to 38% of the second phase production of 80,000 tonnes per year of lithium carbonate at the Thacker Pass project. Lithium Americas CEO Jonathan Evans stated that the joint venture with GM strengthens their relationship and mutual goal of developing a robust domestic lithium supply chain. The company aims to reach a final investment decision by the end of the year in collaboration with GM. This investment reflects GM’s efforts to ramp up its EV plans, including retiring the “Ultium” branding and establishing a new battery cell research lab in Michigan. GM has also partnered with Samsung to build a $3.5 billion battery cell manufacturing plant in Indiana, with the next-generation batteries projected to reduce costs by $6,000 per EV.
CEO Mary Barra has stated that GM is on track to produce around 200,000 EVs in North America this year, with profitability expected on a production basis in the current quarter. This investment in the lithium mine is part of GM’s broader strategy to enhance its EV production and sales. The automaker’s partnership with Lithium Americas and the U.S. government’s loan to develop the Thacker Pass project reflects the increasing focus on securing a domestic supply chain for critical materials like lithium. This move aligns with the broader industry trend towards electrification and the need for automakers to ensure a stable supply of essential components for electric vehicles.
As GM continues to expand its EV portfolio and develop new technologies to improve battery performance and reduce costs, the investment in the Nevada lithium mine underscores the company’s commitment to sustainability and meeting the growing demand for electric vehicles. By securing a long-term supply of lithium, GM aims to strengthen its position in the EV market and drive further growth in its electric vehicle sales. The joint venture with Lithium Americas signals a strategic partnership between the two companies as they work towards advancing the development of the Thacker Pass project and building a robust domestic lithium supply chain. Overall, GM’s increased investment in the Nevada lithium mine represents a significant step towards achieving its goal of increasing EV production and sales while ensuring a stable and sustainable supply of critical materials for electric vehicle batteries.
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