General Motors will invest $625 million in Canadian lithium projects

According to foreign media reports, Canadian mining company Lithium Americas said on October 16 that General Motors will invest US$625 million in its new joint venture to develop the Thacker Pass project in Nevada.

Currently, a number of American automakers are accelerating the production of electric and hybrid vehicles, and are trying to reduce dependence on China battery-related materials in the highly competitive market.

Lithium Americas, based in Vancouver, Canada, said General Motors will acquire a 38% asset-level ownership of the Thacker Pass project for $625 million, which includes $430 million in direct cash support (for phase 1 construction) and a $195 million credit line.

The new agreement replaces an investment worth US$330 million that the two sides postponed in August this year.

, Image source: General Motors,Lithium Americas said that after the transaction is completed, General Motors will also sign an additional 20-year off-take agreement to purchase up to 38% of the second phase of the Thacker Pass project.

, Earlier this year, the U.S. Department of Energy planned to provide Lithium Americas with a loan of up to $2.

26 billion to build the Thacker Pass lithium project.

The project has enough lithium reserves to produce batteries for 1 million electric vehicles every year.

, Lithium Americas said it expects to complete the U.S. Department of Energy loan procedures in the next few weeks and plans to make a final investment decision on the project by the end of the year.

In March 2023, Lithium Americas began preliminary construction of the project in Humboldt County, south of the Nevada border with Oregon.

Previously, the company won a long and complex lawsuit against environmentalists, ranchers and Aboriginal communities.

, In addition, GM also said it will invest US$10 million in materials science company Forge Nano.

GM plans to use the company’s battery material coatings on electric vehicle batteries to improve battery performance and service life.

, Return to the first electric network home page>,.

Link to this article: https://evcnd.com/general-motors-will-invest-625-million-in-canadian-lithium-projects/

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