The clay mixture from which the lithium will be extracted is held by Tim Crowley, a spokesman for Lithium Americas Corp.
Carolyn Cole | Los Angeles Times | Getty Images
DETROIT — General Motors agreed to form a joint venture with Lithium Americas Corp. that includes the automaker providing $625 million in cash and credit to the Canadian mining operation, the companies announced Wednesday.
The deal focuses on the development, construction and operation of a lithium carbonate mining operation called Thacker Pass in Humboldt County, Nevada. Lithium is a key component for the batteries that power electric vehicles.
The joint venture agreement replaces a previously announced, planned equity investment by GM in the Vancouver, Canada-based company.
Securing raw materials such as lithium from the US is crucial to GM’s plans to profitably grow its all-electric vehicle business and meet tougher federal requirements for incentives to produce and sell the vehicles and large batteries needed to their supply.
“We are pleased with the significant progress Lithium Americas is making to help GM achieve our goal of developing a resilient EV materials supply chain,” Jeff Morrison, GM’s senior vice president of global purchasing and supply chain. he said in a statement. “Sourcing critical EV raw materials such as lithium from US suppliers is expected to help us manage battery costs, deliver value to our customers and investors, and create jobs.”
GM and Lithia Americas shares
The announcement sent Lithium Americas shares up 23% in Wednesday trading to close at $3.29. The company’s market capitalization is $532.9 million.
Windswept, remote Thacker Pass in northern Nevada, permits approved for a massive lithium mine proposed by Lithium Americas Corp. are drawing strong protests from local indigenous people, ranchers and environmentalists.
Carolyn Cole | Los Angeles Times | Getty Images
GM will own 38 percent of Thacker Pass, according to the release. The joint venture’s investment is expected to include $330 million in cash that will be contributed on its closing date. $100 million in cash that will contribute to a “final investment decision” for a phase of the project. and a $195 million credit facility prior to the first drawdown of the Department of Energy’s $2.3 billion loan.
“Our relationship with GM has been greatly strengthened with this joint venture as we continue to pursue a mutual goal of developing a strong domestic lithium supply chain by advancing the development of Thacker Pass,” said Lithium Americas CEO Jonathan Evans. he said in a statement.
June 7, 2021Jonathan Evans is President and CEO of Lithium Americas Corp. It holds the clay mixture from which the lithium will be extracted.
Carolyn Cole | Los Angeles Times | Getty Images
The joint venture is in addition to GM’s $320 million investment in Lithium Americas in February 2023. The investment included the acquisition of approximately 15 million GM common shares of Lithium Americas.
In August, GM and Lithium Americas agreed to delay second tranche investment worth $330 million in the coal mine to explore alternative structures for the investment.