GM Boosts Investment in Lithium Americas’ Thacker Pass Project to $625 Million
Canada's Lithium Americas announced that General Motors (GM) will increase its planned investment in the Thacker Pass lithium project in Nevada by nearly 90%, to $625 million, giving the automaker an ownership stake in the mine that produces lithium—a critical component for electric vehicle (EV) batteries.
The expanded investment follows a $2.26 billion preliminary commitment from the U.S. Department of Energy (DoE) in March to finance lithium-processing facilities at Thacker Pass. GM will make a second-tranche investment of $430 million in cash, along with a $195 million letter of credit to support reserve requirements under the DoE loan.
Shares of Lithium Americas surged 20% in premarket trading to $3.20 following the announcement.
The Thacker Pass deal comes as GM and rival Ford Motor have delayed or canceled several EV models, citing slower-than-expected consumer adoption in the U.S. Despite these delays, GM's CEO Mary Barra reiterated that the company remains committed to an all-electric future, even if the transition is taking longer than initially forecast.
"We're pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain," said Jeff Morrison, GM's senior vice president of global purchasing and supply chain.
This announcement follows GM's first investment of $320 million to acquire about 15 million common shares of Lithium Americas. The new second tranche replaces an earlier plan for a $330 million investment, as part of the companies' original agreement in January 2023. The original GM equity investment was for a total of $650 million.
Additionally, earlier this year, Lithium Americas raised $275 million through a public offering of 55 million shares. Under the updated investment, GM extended its offtake agreement for up to 100% of production from the first phase of Thacker Pass to 20 years and agreed to an additional 20-year offtake for up to 38% of second-phase production volumes.
Lithium Americas will retain a 62% interest in Thacker Pass and manage the project, while GM will hold the remaining 38% stake.
