Lithium Americas announced on Wednesday that General Motors (GM.N) will invest $625 million in their joint venture to develop the Thacker Pass lithium project in Nevada. This investment comes as U.S. automakers seek to boost electric vehicle (EV) and hybrid production while reducing reliance on Chinese suppliers for battery materials in a competitive market.
As part of the agreement, GM will acquire a 38% asset-level ownership stake in the Thacker Pass project. The investment comprises $430 million in direct cash funding aimed at supporting the construction of Phase 1 and a $195 million letter of credit facility. This new deal replaces a previously delayed investment of $330 million that was set to occur in August.
Earlier in the year, the U.S. Department of Energy had proposed lending Lithium Americas up to $2.26 billion to help fund the Thacker Pass project, which has the potential to produce enough lithium to support the production of one million electric vehicles annually. The company anticipates finalizing the DOE loan within the next few weeks and plans to make a final investment decision for the project by the end of the year.
Initial construction at the Thacker Pass site, located in Humboldt County, Nevada, began in March 2023 after Lithium Americas successfully navigated a lengthy court case against conservationists, ranchers, and Indigenous communities. Upon closing the transaction, GM will also enter into a 20-year offtake agreement for up to 38% of production from Phase 2 of the Thacker Pass project.
In a separate announcement, GM revealed plans to invest $10 million into the materials science firm Forge Nano. The automaker aims to utilize Forge Nano’s battery material coating technology to enhance the performance and lifespan of its electric vehicle cells.
