- Lithium Americas (TSX:LAC) reveals that General Motors (NYSE:GM) will invest US$625 million in cash and credit to the company
- General Motors will acquire a 38 per cent asset-level ownership stake in Lithium Americas’ Thacker Pass lithium carbonate mining operation
- The investment comes in addition to the $320 million investment GM made in Lithium Americas in 2023
- Shares of Lithium Americas are up 18.92 per cent to C$4.40 as of 12:01 p.m. ET, while General Motors’ stock is up 2.38 per cent to US$48.99 as of 12:23 p.m. ET.
Lithium Americas (TSX:LAC) reveals that General Motors (NYSE:GM) will invest US$625 million in cash and credit to the company.
In a news release, the company stated that as part of the agreement, General Motors will acquire a 38 per cent asset-level ownership stake in Lithium Americas’ Thacker Pass lithium carbonate mining operation in Nevada.
This agreement marks the largest public investment by a U.S. original equipment manufacturer into a lithium carbonate project in what could be one of the biggest lithium mines in the United States.
The investment comes in addition to the $320 million investment GM made in Lithium Americas in 2023 as the vehicle manufacturer continues in its efforts to secure the supply of the battery metal used in electric vehicles.
“Our relationship with GM has been significantly strengthened with this joint venture as we continue to pursue a mutual goal to develop a robust domestic lithium supply chain by advancing the development of Thacker Pass,” Jonathan Evans, CEO of Lithium Americas, said in a statement. “We will be working closely with GM to advance towards the final investment decision, which we are targeting by the end of the year.”
The funding from General Motors for Thacker Pass comes in addition to the $2.3 billion loan the U.S. Department of Energy (DOE) made in March. Under the Advanced Technology Manufacturing Loan Program, the company is expected to fund roughly $195 million for reserve accounts associated with the DOE by the middle of 2025 and before making the first draw on the loan.
In the coming weeks, it is expected the loan with the DOE will close, while Lithium Americas and General Motors plan to issue full notice to proceed with Thacker Pass by the end of the year.
Lithium Americas is focused on developing the Thacker Pass project in Humboldt County in northern Nevada, which is host to the largest known measured and indicated lithium resource in North America.
Shares of Lithium Americas (TSX:LAC) are up 18.92 per cent to C$4.40 as of 12:01 pm ET, while General Motors’ stock is up 2.38 per cent to US$48.99 as of 12:23 pm ET.
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