In an effort to secure domestic supply of lithium, General Motors will back up Lithium Americas Corp. project with a $625 million investment.
The Thacker Pass project in northern Nevada hosts the largest known lithium deposit in North America and is expected to produce approximately 40 000 metric tons per year once it’s fully operational, providing GM with a crucial supply of the metal needed for battery electric vehicles.
According to Bloomberg, the cash-and-credit funding deal with project developer Lithium Americas builds on a $320 million investment that GM made in the Canadian company last year. It will be crucial toward the miner unlocking a $2.3 billion funding package the US Energy Department offered on a conditional basis in March.
GM will support Lithium Americas with an additional $430 million cash lifeline amid slumping lithium prices. The automaker will also form a joint venture with Lithium Americas and take a 38% direct stake in the mine as part of the deal.
The companies described the transaction as the biggest-ever publicly announced investment by a US manufacturer in a lithium carbonate project.
Theodor Lisovoy, Managing Editor, Rough&Polished
