GM will have exclusive access to production from Phase 1 of the Thacker Pass mine in Nevada, the largest known source of lithium in the United States. The raw material obtained by Lithium Americas will help support EV production.
Detroit, February 2, 2023. General Motors Company (GMC) has announced that it will continue to operate in the United States. and Lithium America Corp. announced today that they will co-invest to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the United States and the third largest in the world.
Under the agreement, GM will make a $650 million equity investment in Lithium Americas, representing the largest investment ever by an automaker to produce battery raw materials. Lithium Americas estimates that the lithium mined and processed from the project could support the production of 1 million electric vehicles per year.
The lithium carbonate from Thacker Pass will be used in GM’s own ultimium battery cells. Lithium is a key material in lithium-ion batteries and stands up well to repeated charging and discharging (including fast charging), provides high energy density, and provides more useful capacity than other types of batteries. Is.
GM is launching a broad portfolio of trucks, SUVs, luxury vehicles and light commercial vehicles using the Ultium platform, including the GMC Hummer EV trucks and SUVs, GMC Sierra EV, Cadillac Lyric, Cadillac Celeste, Chevrolet Silverado EV, Chevrolet Blazer EV, Chevrolet Is. Equinox EV, BrightDrop Zevo 400 and BrightDrop Zevo 600.
‘GM has secured all the battery material needed to make more than 1 million electric vehicles a year in North America by 2025 and our future production will increasingly rely on domestic resources such as the Nevada site that we are developing with Lithium. are doing. America’, said the GM president. and executive director Mary Barra. ‘Sourcing raw materials and critical components for electric vehicles directly from suppliers in North America and countries with free trade agreements helps make our supply chain more secure, helps us manage cell costs and creates jobs helps’.
“The agreement with GM is an important milestone in moving Thacker Pass toward production, while also laying the groundwork for the separation of our US and Argentina businesses,” said Jonathan Evans, President and CEO of Lithium Americas. ” ‘This relationship underlines our commitment to developing a sustainable domestic lithium supply chain for electric vehicles. We are pleased to have GM as our largest investor and look forward to working together to accelerate the energy transition while encouraging job creation and economic growth in the United States.’
GM’s investment will be divided into two parts. Funds for the first tranche will be held in escrow pending the fulfillment of certain conditions, including the outcome of the record of judgment currently pending in US District Court. If those conditions are met, the funds will be released and GM will become a shareholder of Lithium of America. Escrow release is expected no later than the end of 2023. The investment is expected to be the second tranche in Lithium Americas’ US-focused lithium business following the separation of its businesses in the US and Argentina and is subject to. Similar conditions including Lithium Americas securing sufficient capital to finance development expenditures to support Thacker Pass.
Production at Thakar Pass is expected to commence in the second half of 2026. In connection with the closing of the first tranche of investment, GM will have exclusive access to the production of Phase I through a binding supply agreement and the right of first offer on Phase II. Production. Lithium Americas expects Thacker Pass to generate 1,000 manufacturing jobs and 500 in operation.
GM announced four Cell plants in the US with an annual capacity of 160 gigawatt hours, including Ultium Cell’s joint venture plant with LG Energy Solutions in Warren, Ohio, which is in production, and an additional joint venture site in Spring Hill , is in Tennessee. , and Lansing, Michigan which are scheduled to open in 2023 and 2024, respectively. The first three Ultium Cell plants are expected to create 6,000 jobs in manufacturing and 5,000 in operations.
GM is currently manufacturing electric vehicles at two Michigan plants, one Tennessee plant, and one Ontario plant, and its suppliers are investing to build a strong North American-focused supply chain for raw materials, processed materials, and electric vehicle components. are doing. , with major projects underway in California. , Texas, Ohio and Quebec.