The Canadian mining company has also signed an offtake agreement with GM to supply the latter with lithium carbonate production from phase 1 of the project
Lithium Americas to receive $650m investment from GM to develop the Thacker Pass lithium project. (Credit: ivabalk from Pixabay)
General Motors (GM) has announced an investment of $650m in Canadian mining company Lithium Americas to develop the Thacker Pass lithium project in Humboldt County, Nevada, US.
Lithium Americas will receive the equity investment in two tranches.
The first tranche includes $320m for common shares representing almost 10% of the mining company. This will be before the previously announced separation of its US and Argentine operations into two standalone public companies.
The second tranche consists of $330m and is expected to be invested in Lithium Americas following its separation.
Following the first tranche investment, the US-based automotive manufacturer will gain exclusive access to phase 1 production under a binding supply agreement and a right of first offer on phase 2 production.
The offtake agreement is committed for 10 years from the start of phase 1 production, with GM having the option to extend by an additional five years.
Phase 1 production at the lithium project is anticipated to begin in the second half of 2026.
Lithium Americas president and CEO Jonathan Evans said: “The agreement with GM is a major milestone in moving Thacker Pass toward production, while setting a foundation for the separation of our U.S. and Argentine businesses.
“This relationship underscores our commitment to develop a sustainable domestic lithium supply chain for electric vehicles. We are pleased to have GM as our largest investor, and we look forward to working together to accelerate the energy transition while spurring job creation and economic growth in America.”
Located at the southern end of the McDermitt Caldera, the Thacker Pass project is expected to supply lithium needed for up to one million electric vehicles (EVs) per year.
With a life of mine of 40 years, Thacker Pass has proven and probable mineral reserves of 3.7 million tonnes of lithium carbonate equivalent.
The final key state-level permits from the Nevada Division of Environmental Protection (NDEP) for the project was secured by the Canadian mining company in February 2022.
Lithium Americas has also signed an offtake agreement with GM to supply the latter with lithium carbonate production from phase 1 of the project.
GM chair and CEO Mary Barra said: “GM has secured all the battery material we need to build more than 1 million EVs annually in North America in 2025 and our future production will increasingly draw from domestic resources like the site in Nevada we’re developing with Lithium Americas.
“Direct sourcing critical EV raw materials and components from suppliers in North America and free-trade-agreement countries helps make our supply chain more secure, helps us manage cell costs, and creates jobs.”