General Motors Chairman and CEO Mary Barra appears via live broadcast as she delivers a keynote address digitally at CES 2022 in Las Vegas, Nevada on January 5, 2022 .
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Detroit- General Motors has agreed to form a joint venture with the following companies Lithium Americas The automaker is among those providing $625 million in cash and credit to Canadian mining companies, the companies announced Wednesday.
The transaction focuses on the development, construction and operation of a lithium carbonate mining operation called Thacker Pass in Humboldt County, Nevada. Lithium is a key component of electric vehicle batteries.
Obtaining raw materials such as lithium from the United States is critical to GM’s plans Earnings growth for its all-electric vehicles business and meet stringent federal requirements for incentives to produce and sell vehicles and the large batteries needed to power them.
“We are pleased with the significant progress Americas Lithium is making in helping General Motors achieve its goal of developing a resilient electric vehicle materials supply chain,” said Jeff Morrison, GM’s senior vice president of global procurement and supply chain. said in a press release. “Sourcing critical electric vehicle raw materials such as lithium from U.S. suppliers is expected to help us manage battery costs, create value for customers and investors, and create jobs.”
General Motors and Lithia Americas Stock
The news sent Lithium Americas’ shares up about 10% to about $3 in early trading Wednesday. Shares of the agreement rose more than 20% during pre-market trading, has been announced before as an equity transaction.
General Motors will own 38% of Thacker Pass, according to the release. The joint venture investment is expected to include a cash contribution of $330 million at closing; $100 million in cash at the time of a “final investment decision” on one phase of the project; and $195 million prior to the first drawdown of the $2.3 billion Department of Energy loan. letter of credit financing.
Jonathan Evans, CEO of Lithium Americas, said: “Through this joint venture, our relationship with General Motors has been significantly strengthened as we continue to pursue our shared goal of developing a strong domestic lithium supply chain by advancing the development of Thacker Pass. said in a press release.
The joint venture complements GM’s $320 million investment in Lithium Americas in February 2023.
In August, General Motors and Lithium Americas agreed to delay Second phase investment Mining rigs worth $330 million to explore alternative investment structures.
