## Brief Overview
### GM Invests $625 Million in Lithium Production Capacity
The automaker is partnering with Lithium Americas to develop the Thacker Pass mine in Nevada, where GM has agreed to purchase 100% of the lithium produced over the next two decades.
Published on October 18, 2024
### Brief Overview:
– General Motors announced an investment of $625 million in the Thacker Pass mine located in Humboldt County, Nevada, to strengthen its control over the end-to-end supply chain for electric vehicles and batteries.
– As part of the investment agreement, GM will form a joint venture with critical minerals company Lithium Americas to co-finance, develop, construct, and operate the mine.
– The agreement supersedes an earlier pact signed between the two companies in January 2023. General Motors has already invested $320 million in the initial phase of the project as part of a previously agreed-upon $650 million deal.
### In-Depth Insights:
General Motors is one of many automakers aiming to localize lithium resources to comply with the Inflation Reduction Act and secure tax credits for electric vehicles.
The agreement with Lithium Americas aims to help GM ensure domestic supply of critical minerals over the coming decades. The company has committed to purchasing up to 100% of production from the mine’s initial phase for a period of 20 years, followed by an option to buy up to 38% in the second phase.
GM will also hold a 38% stake in the Thacker Pass mine, which is described as North America’s largest known lithium deposit.
Construction at the site has already begun with concrete pouring scheduled for mid-2025. According to company reports, engineering design work is currently 40% complete.
Earlier this year, the U.S. Department of Energy provided a $2.26 billion loan to Lithium Americas to support the development of processing facilities at the site. The company expects to finalize the loan arrangements in the coming weeks based on Wednesday’s announcement.
According to Tim Crowley, vice president of Lithium Americas, production is expected to commence by late 2027. In its first phase of operation, the project plans to produce 40,000 metric tons per year of battery-grade lithium carbonate.
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Source: Supply Chain Dive
