Lithium Americas and GM Partner to Boost Nevada Lithium Mining: A Game-Changer for EV Battery Supply
Discover how Lithium Americas and General Motors' new joint venture at Nevada's Thacker Pass is set to transform the electric vehicle battery supply chain and drive innovation in sustainable mining.
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Highlights
- Lithium Americas teams up with General Motors to develop lithium extraction at the Thacker Pass site in Nevada.
- GM invests $625 million, acquiring a 38% ownership stake in the project.
- The partnership aims to strengthen the domestic supply chain for lithium and essential EV battery materials, enhancing cost efficiency.
Shares of Lithium Americas (LAC) surged significantly following the announcement of a strategic joint venture with General Motors (GM) to mine lithium—a critical component for electric vehicle batteries—at the prominent Thacker Pass location in Nevada.
Under the agreement, GM will contribute $625 million, including a $430 million direct cash investment supporting Phase 1 construction of the Thacker Pass lithium mine. The remaining funds will serve as credit collateral for a conditional $2.3 billion Department of Energy loan aimed at advancing the project.
Lithium Americas plans an initial investment of $211 million and will retain a 62% stake in the venture.
GM’s Vision for a Robust and Sustainable EV Supply Chain
This collaboration supersedes GM's prior $330 million equity commitment from January 2023, reflecting a strengthened partnership.
Jeff Morrison, GM’s Chief Procurement and Supply Chain Officer, emphasized that the alliance supports GM’s mission to establish a resilient supply chain for EV materials. Sourcing critical raw materials like lithium domestically is expected to optimize battery cell costs, deliver enhanced value to customers and investors, and generate employment opportunities.
Despite a 26% increase on the announcement day, Lithium Americas shares have declined over 33% this year, while GM’s stock rose approximately 2% on the same day and has gained nearly 37% year-to-date.
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