| Key Points: – GM partners with Lithium Americas to develop a lithium mining project in Nevada, investing $625 million. – The Thacker Pass project will boost GM’s efforts to secure domestic lithium for EV battery production. – The deal is a key step in GM’s goal of building a resilient, U.S.-based EV supply chain. |
General Motors (GM) is making a significant move to strengthen its electric vehicle (EV) supply chain by partnering with Lithium Americas Corp. in a joint venture. This collaboration involves a substantial $625 million investment in the Thacker Pass lithium carbonate mining project, located in Humboldt County, Nevada. Lithium is a critical component for manufacturing the high-capacity batteries needed to power EVs, making this deal a pivotal step in GM’s goal of building a resilient, U.S.-based supply chain.
With EV demand surging and federal regulations tightening on emissions, GM is focusing on ensuring a steady and reliable supply of lithium, a key raw material for EV batteries. This partnership, which includes $330 million in cash at closing, $100 million upon final project decisions, and a $195 million credit facility, is designed to secure GM’s access to lithium for its growing fleet of electric vehicles. GM will hold a 38% interest in the Thacker Pass project, which is expected to create significant job opportunities and contribute to cost savings in battery production.
“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,” said Jeff Morrison, GM’s senior vice president of global purchasing and supply chain. Securing lithium and other essential raw materials domestically is critical for managing battery costs, providing value to customers, and meeting investor expectations.
This joint venture builds on GM’s earlier $320 million investment into Lithium Americas in February 2023, further cementing their relationship. As the Thacker Pass project moves forward, it will play a crucial role in GM’s ambitious plan to scale its EV business and produce electric vehicles more profitably, in line with tightening U.S. environmental regulations.
This development is particularly timely as it comes amid a broader focus on building out the U.S. EV supply chain. Just yesterday, Wolfspeed, a key player in the EV chip industry, secured a $750 million grant from the U.S. government to enhance its silicon carbide wafer manufacturing for EVs. The Wolfspeed funding aims to expand production capacity and contribute to the growth of energy-efficient technologies for the EV market, which aligns with GM’s efforts in securing lithium.
The Wolfspeed project and GM’s lithium venture highlight the importance of fostering a domestic EV supply chain to reduce reliance on foreign resources, ensuring that the U.S. remains competitive in the global EV race. By linking these two developments, the broader picture of the growing U.S. EV infrastructure comes into view, from essential raw materials like lithium to advanced chip technologies, all designed to power the future of transportation.
As GM continues to push its all-electric vision, its investment in Thacker Pass positions the company to meet the increasing demand for EVs, while simultaneously reducing costs and securing a vital component of the battery production process. With both Wolfspeed and GM making significant strides, the U.S. EV industry is poised for substantial growth in the coming years.