- Lithium Americas and General Motors have entered an agreement to create a joint venture to develop the Thacker Pass lithium mining project, based in Nevada.
- Within the joint venture, GM will contribute $625 million worth of cash and credit to Thacker Pass, whilst another $2.3 billion is set to come from a conditional loan granted by the U.S. Department of Energy.
- This new agreement replaces a previous 2023 deal between the two firms.
New joint venture will help provide for the U.S. EV battery supply chain
Lithium America, founded in 2023, has the primary goal right now of developing the Thacker Pass lithium mine in Nevada, which has the potential to extract 40,000 tonnes worth of lithium annually, upon its opening. This equates to enough to supply around one million lithium-ion EV batteries, every year. For reference, approximately 1.19 million BEVs were sold in the U.S. in 2023, which shows the huge potential of setting up local lithium mining, particularly for EV manufacturers within the states.
Under the agreement, General Motors will acquire a 38% stake in the Thacker Pass project, whilst Lithium Americas will hold a majority 62% ownership in the project, with a contribution of $387 million in funding.
Jonathan Evans, President and CEO of Lithium Americas, commented on the agreement:
“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. 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. We will be working closely with GM to advance towards the final investment decision, which we are targeting by the end of the year.”
Jeffrey Morrison, Senior Vice President of Global Purchasing and Supply Chain at General Motors, added:
“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 U.S., is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”