GM Invests $625 Million in Nevada Lithium Mine to Strengthen EV Supply Chain

General Motors (GM) has announced a strategic investment of $625 million in Lithium Americas’ Thacker Pass lithium mine, aiming to secure a reliable supply of critical raw materials for its electric vehicle (EV) production. This marks the largest investment in a lithium mining project by a U.S. automaker to date.

GM Boosts Domestic Lithium Production for EV Growth
General Motors (GM) is making a major commitment to the future of electric vehicles (EVs) by investing $625 million in the Thacker Pass lithium mine in Nevada, owned by Lithium Americas (LAC). The investment secures GM a 38% stake in the project, which is expected to play a crucial role in the automaker’s effort to develop a robust and resilient EV supply chain. This move comes after a $2.3 billion loan from the U.S. Department of Energy to support the development of Thacker Pass earlier in 2024, underscoring the strategic importance of domestic lithium production for the U.S. EV market.

Lithium Supply Agreement to Support 800,000 EVs
The initial phase of the Thacker Pass project will be supported by an immediate $330 million investment from GM. The first phase is expected to produce 40,000 tonnes of lithium carbonate annually, all of which GM will secure through an offtake agreement. This supply is projected to be enough to produce around 800,000 electric vehicles annually, significantly contributing to GM’s efforts to meet growing EV demand. GM’s senior vice president of global purchasing and supply chain, Jeff Morrison, highlighted the importance of this partnership: “Sourcing critical EV raw materials, like lithium, from U.S. suppliers will help us manage battery cell costs and deliver value to our customers, investors, and create jobs,” Morrison said.

Addressing Lithium Price Volatility and Securing Future Supply
As lithium prices have seen some fluctuation recently—declining from $9.50-9.80/kg to $9.30-9.60/kg in early October—GM’s investment in Thacker Pass is designed to mitigate the risk of price volatility and secure a stable, long-term supply of lithium for its EV battery production. The partnership with Lithium Americas ensures that GM will have access to a steady stream of lithium carbonate, a key component for EV batteries, at a time when demand for electric vehicles continues to surge.

Strategic Importance of Domestic Lithium for U.S. EV Industry
The collaboration between GM and Lithium Americas emphasizes the increasing need for domestic production of lithium to support the U.S. electric vehicle industry. As the U.S. seeks to expand its EV market and meet net-zero goals, securing a reliable and sustainable supply of critical minerals like lithium is essential. The Thacker Pass mine is expected to contribute significantly to the U.S. goal of reducing reliance on foreign lithium imports, ensuring that domestic automakers can meet future demand while supporting local economies.

Industry Support for Securing Critical Materials
This partnership is not only crucial for GM but also reflects broader industry efforts to secure critical materials needed for the transition to electric transportation. Strategic investments like this one are vital for ensuring that automakers have access to the materials required for large-scale EV production, and help create a more resilient supply chain for the growing electric vehicle market.