General Motors to Aid Lithium Americas in Developing Thacker Pass Mine in Nevada

Nevada [U.S.]: General Motors has announced that it will invest $650 million to assist Lithium Americas Corp in the development of North America's largest Lithium mine, Nevada's Thacker Pass Lithium mining project. If successful, the project has enough battery metal to build 1 million electric vehicles annually. The deal comes at a time when the industry is rapidly transitioning to greener technology and marks an important milestone for Lithium Americas as it continues its efforts to develop the Lithium mine, which currently faces a longstanding court case.

On Monday, Lithium Americas saw shares skyrocket more than 14% to $25.23, as investors welcomed news from the U.S. Senate on Tuesday. Senator Joe Manchin stated the investment in Lithium Americas was a "tangible result" of the Inflation Reduction Act of last year and praised GM for their robust earnings forecast for the year, which lifted shares by 8.4%.

Lithium Americas is making history with their investment in Thacker Pass, the first to ever extract Lithium at commercial scale from a large clay deposit. This marks the second such investment by auto giant General Motors in two years, following the signing of a supply deal in 2021 with Controlled Thermal Resources Ltd to filter Lithium from geothermal Brines in California.

General Motors (GM) announced it would become the largest shareholder of Lithium Americas, replacing China's Ganfeng Lithium. GM also agreed to purchase all the Lithium from Thacker Pass when it opens in 2026 - an estimated 40,000 tonnes on an annual basis.

After a lengthy negotiation process spanning nearly a year, two rival U.S. Lithium companies have struck deals with automotive giants: ioneer Ltd signed an agreement to supply Ford Motor Co and Piedmont Lithium Inc secured a pact with Tesla Inc.

"We wanted the right and holistic parter, rather than a bunch of offtake agreements," Jon Evans, the Lithium Americas chief executive, stated. "It was worth it to wait."

General Motors (GM) and Lithium Americas have come to an agreement that would see GM buy $650 million worth of shares in the latter company. If Lithium Americas is successful in a court case related to permits for a mine approved by former U.S. President Donald Trump, this first tranche of the agreement will be realized. According to CEO Jon Evans, the probability of losing the case and its associated permits is "extremely low." This ruling is expected to be announced within the next couple of months.

Lithium Americas has announced an expansion of their budget for the first phase of the Thacker Pass project. The total cost of this phase will now be $2.27 billion, up from $1.06 billion - with the funding to come after they have completed their planned split into North and South American operations later this year.

Lithium Americas is planning an ambitious project that requires a loan from the U.S. Department of Energy - building a 3,000 tonne-per-day Sulfuric acid plant to extract Lithium from the clay at its site. The loan will fund a "major component" of this remaining investment for the project.

Lithium Americas has secured the support of one Native American tribe, but many other tribes and environmental organizations have expressed apprehension that it could have a detrimental effect on wildlife and water resources.