[ad_1]
The clay mixture from which the lithium will be extracted is owned by Tim Crowley, a spokesman for Lithium Americas Corp.
Carolyn Cole | Los Angeles Times | Getty Images
DETROIT — General engines agreed to create a joint venture with Lithium Americas Corp. that includes the automaker providing $625 million in cash and credit to the Canadian mining company, the companies announced Wednesday.
The agreement centers on the development, construction and operation of a lithium carbonate mining operation called Thacker Pass in Humboldt County, Nevada. Lithium is a key element in the batteries that power electric vehicles.
Obtaining raw materials such as lithium from the United States is crucial to GM’s plans to profitably grow its all-electric vehicle business and meet increasingly stringent federal requirements for incentives for the production and sale of vehicles and the large batteries needed to power them.
“We are pleased with the significant progress Lithium Americas is making to help GM achieve our goal of developing a resilient electric vehicle materials supply chain,” Jeff Morrison, senior vice president of global purchasing and supply chain from GM, said in a press release. “Sourcing critical raw materials for electric vehicles, like lithium, from suppliers in the United States, should help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”
GM Stock and Lithia Americas
The announcement sent shares of Lithium Americas up about 10% in early trading Wednesday to around $3. The stock had jumped more than 20% in premarket trading for the deal, which was previously announced as an all-stock transaction.
In the isolated, windswept Thacker Pass region of far northern Nevada, approved permits for a massive lithium mine, proposed by Lithium Americas Corp., are drawing passionate protests from the local indigenous population , breeders and environmentalists.
Carolyn Cole | Los Angeles Times | Getty Images
GM will own a 38% stake in Thacker Pass, according to the release. The joint venture investment is expected to include $330 million in cash to be contributed on the closing date; $100 million in cash will be provided in a “final investment decision” for one phase of the project; and a $195 million letter of credit facility ahead of the first draw on the Department of Energy’s $2.3 billion loan.
“Our relationship with GM has been significantly strengthened through this joint venture as we continue to pursue a common goal of developing a strong domestic lithium supply chain by advancing the development of Thacker Pass,” said Jonathan Evans, CEO of Lithium Americas. said in a press release.
June 7, 2021Jonathan Evans is President and CEO of Lithium Americas Corp. It holds the clay mixture from which the lithium will be extracted.
Carolyn Cole | Los Angeles Times | Getty Images
The joint venture is in addition to GM’s $320 million investment in Lithium Americas in February 2023. The investment included GM’s acquisition of approximately 15 million shares of Lithium Americas common stock.
In August, GM and Lithium Americas agreed to delay a second tranche investment worth $330 million in the miner to explore alternative structures for investment.