GM invests $625M into lithium mining for EV battery supply

General Motors has invested in a joint venture with Lithium Americas Corp that will be used toward the development of the Thacker Pass Project, a lithium mining and processing facility located in northern Nevada. Lithium is a crucial component for powering electric vehicle (EV) batteries.

Details first: 

• GM will acquire a 38% asset-level ownership stake in Thacker Pass for its investment. 

• Thacker Pass is expected to provide enough lithium to support the production needs for up to 800,000 electric vehicles annually.

• $430 million of the direct cash funding from GM will support the construction of Phase 1 of the Thacker Pass Project and a $195 million letter of credit facility.

According to a press release from Lithium Americas, the new agreement with GM will allow Lithium Americas to secure the conditional commitment for a $2.3 billion U.S. Department of Energy loan announced earlier this year.

Meanwhile, GM announced a $10 million investment in material science company Forge Nano, focusing on enhancing EV battery performance. The automaker plans to leverage Forge Nano’s advanced battery material coating technology to boost the efficiency and lifespan of EV cells.

Bigger picture: This could explain why GM recently announced its decision to drop the Ultium branding and focus on driving down battery costs by experimenting with new battery chemistries. Either way, GM will require a steady lithium supply to outpace the competition, and this investment is a start.

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