
General Motors’ bold $625 million venture with Lithium Americas at Thacker Pass sets the stage for a domestic lithium revolution in electric vehicle production.
At a Glance
- GM invests $625M in Thacker Pass for EV lithium supply, bolstering U.S. production.
- Thacker Pass to produce enough lithium for 800,000 EVs, with potential to double output.
- The U.S. Department of Energy considers a record $2.26B loan for the project.
- Construction began in March 2023, aiming for completion by 2027.
GM’s Strategic Move
General Motors announced a $625 million investment in the Thacker Pass lithium project in Nevada. This joint venture with Lithium Americas is pivotal for GM as it aims to secure the raw materials needed to boost its electric vehicle (EV) production. The investment reflects the need to reduce reliance on China for lithium, which is vital for manufacturing EV batteries.
As part of the agreement, GM will acquire a substantial 38% stake in the Thacker Pass project, with Lithium Americas retaining the remaining 62% ownership. This distribution underscores the importance of shared responsibility in advancing the project to meet the rising demand for EVs.
Implications of the Investment
The financial structure of the deal includes $430 million in cash and a $195 million letter of credit facility dedicated to the first phase of construction. The involvement of the U.S. Department of Energy, which plans to lend up to $2.26 billion, signifies federal support for large-scale domestic lithium production projects that have been long overdue.
“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,” said Jeff Morrison, GM senior vice president of global purchasing and supply chain, in a statement.
With the Thacker Pass already holding the title of North America’s largest known lithium deposit, the site is expected to produce 40,000 metric tons of lithium carbonate annually by 2027. This output targets the production capacity for approximately 800,000 EVs each year, with future plans to double the production.
Broader Impact and Future Prospects
Beyond immediate production goals, GM’s move aligns with broader federal objectives. The Biden administration’s target for 50% of new car sales to be electric by 2030 is coupled with a push to diminish dependence on Chinese lithium imports. Such strategic alignments are essential not only for meeting regulatory standards but for establishing a resilient domestic EV industry.
“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,” added Lithium Americas CEO Jonathan Evans.
GM’s recent announcements also include a $10 million investment in Forge Nano, reflecting a commitment to enhancing EV battery performance. Such developments underscore GM’s dedication to driving advancements in battery technology and securing a stable supply of critical materials.