Dive Brief:
- General Motors is investing $625 million in Thacker Pass mine in Humboldt County, Nevada, as it looks to control more of its electric vehicle and battery end-to-end supply chain, the company announced on Wednesday.
- As part of the investment deal, GM will form a joint venture with critical mineral company Lithium Americas to fund, develop, construct and operate the mine.
- The deal replaces a January 2023 agreement between the two companies. GM already invested $320 million in the mine in the first of what would have been two tranches of the original $650 million agreement.
Dive Insight:
GM is one of many automakers aiming to source lithium domestically in order to comply with the Inflation Reduction Act and qualify for EV tax credits.
The Lithium Americas deal is meant to help GM ensure domestic access to supply of the critical mineral for the next several decades. GM committed to purchasing up to 100% of production volumes during the mine's initial phase for up to 20 years. The automaker will also buy up to 38% of volumes for another 20 years during phase two of the mine, according to the announcement.
GM will also take a 38% ownership stake in the Thacker Pass mine, which the two companies call the largest known lithium deposit in North America.
Construction is already underway at the mine, with plans for concrete placement to occur in mid-2025. Engineering designs are 40% complete, according to the companies.
The Energy Department gave the project a boost earlier this year with a $2.26 billion loan to Lithium Americas to develop the site's processing facilities. The company expects to close on the loan in the coming weeks, according to the Wednesday announcement.
Production is slated to start at the mine in late 2027, according to Lithium Americas VP of Government and External Affairs Tim Crowley. The project aims to produce 40,000 tons of battery grade lithium carbonate per year during the first phase of production.
