General Motors invests USD625 million in Thacker Pass Lithium Project

General Motors (GM) has announced a USD625 million investment in a joint venture with Lithium Americas, aimed at developing the Thacker Pass lithium project in the U.S. state of Nevada. This move is set to bolster the domestic supply chain for critical minerals, which are essential for electric vehicle (EV) production.

Under the agreement, GM will secure a 38% stake in the Thacker Pass project, with USD430 million in direct cash funding and an additional USD195 million in letters of credit to support a U.S. Department of Energy (DOE) loan of USD2.3 billion. This partnership replaces a previous equity investment and further strengthens GM’s relationship with Lithium Americas, extending their existing lithium supply agreement to 20 years.

Jonathan Evans, president and CEO of Lithium Americas, said: “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.”

This joint venture supports GM’s goal of developing a sustainable EV material supply chain, with Jeff Morrison, senior vice president of Global Purchasing and Supply Chain at GM, adding: “Sourcing critical EV raw materials, like lithium, from suppliers in the U.S., is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”

The Thacker Pass project is expected to create around 1,800 jobs during its three-year construction phase and aims to produce 40,000 tonnes per annum of battery-grade lithium carbonate in its first phase.