GM Invests $625 Million in US Thacker Pass Lithium Mine to Secure EV Supply Chain

Lithium Americas (LAC)

General Motors (GM) has made a significant investment in the Thacker Pass lithium mine, located in Nevada and owned by Lithium Americas (LAC). The automaker will inject $625 million into the project, acquiring a 38% stake, marking the largest investment in a lithium mining project by a US carmaker to date. This deal comes as part of a broader effort to strengthen the supply chain for electric vehicle (EV) materials, following a $2.3 billion loan commitment from the US Department of Energy to support Thacker Pass earlier this year.

Jeff Morrison, GM's senior vice-president of global purchasing and supply chain, emphasized the importance of this partnership: "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. 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."

The first phase of development at Thacker Pass will be backed by an initial cash infusion of $330 million from GM. This phase aims to produce 40,000 tonnes of lithium carbonate annually, all of which GM will secure through an offtake agreement. This supply is projected to be sufficient for approximately 800,000 electric vehicles, highlighting the scale and significance of this partnership in meeting future EV demand.

Recent lithium carbonate prices have shown some volatility, with rates declining to $9.30-9.60/kg CIF China from $9.50-9.80/kg as recorded on October 8.

The collaboration between GM and LAC underscores the growing importance of domestic lithium production for the US EV industry and the need for a stable supply chain for critical raw materials. As electric vehicles gain popularity, such strategic partnerships are crucial in ensuring sustainable growth and meeting market demand.