General Motors has announced plans to establish a joint venture (JV) with Lithium Americas Corp., an agreement that includes a $625 million investment of cash and credit in the Canadian mining business to create a pipeline for raw materials that are crucial to the growth of its all-electric vehicle business.
The agreement includes the development, construction, and operation of a lithium carbonate mining operation in Humboldt County, Nevada called Thacker Pass, which GM will have a 38 percent interest in. Not only will the mine help to ensure the supply of lithium, but it will also support the company in satisfying the ever-tightening federal requirements for incentives to produce its electric vehicle fleet.
“We’re pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain,” Jeff Morrison, GM Senior Vice President of Global Purchasing and Supply Chain, said in a release. “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 JV is in addition to the $320 million investment GM made in Lithium Americas in February 2023, at which point it acquired approximately 15 million common shares in the company.
