General Motors (GM) has taken a significant step to secure a domestic supply of lithium for its electric vehicles (EVs). They announced on October 16 that GM plans to invest a whopping $625 million in a joint venture with Lithium Americas Corp. this move is aimed to develop a lithium mining operation at Thacker Pass in the state of Nevada, US.

This investment is quite a pivotal move for GM as it is eagerly pushing to transition to an all-electric future. Lithium carbonate is a critical component in EV batteries, and by securing a reliable domestic supply, GM aims to reduce its dependence on overseas sources. Notably, majority of current international supply comes from China. This partnership also aligns with federal regulations promoting domestic sourcing of critical EV materials.

GM has agreed to invest $625 million total in cash and letters of credit. According to which, it will receive a 38% interest in the lithium mine. The motor company has agreed to contribute $430 million in direct cash for the construction of the first phase of the project. Additionally, a $195 million letter of credit facility will complement the cash investment. This new arrangement replaces a previously delayed investment agreement from August.

The lithium mined from Thacker Pass is expected to play a crucial role in GM's plans to scale up EV production, reduce costs, and create jobs in the country. The U.S. Department of Energy (DOE) has expressed its support for the project and plans to lend Lithium Americas up to $2.3 billion to support its development.

The Thacker Pass project holds enough lithium reserves to supply materials for batteries powering up to one million EVs annually. Initial construction of the mine began in March 2023 after the mining company successfully resolved a protracted legal battle against environmentalist and conservationists opposing the project.

In addition to the Thacker Pass project, GM has also announced a $10 million investment in Forge Nano, a material science firm specializing in battery material coatings. This investment will provide GM with a technological leverage Forge that will enhance the performance and longevity of EV cells used in its vehicles.

This partnership of Lithium Americas and GM marks a significant milestone to establish a sustainable and resilient supply chain for EV battery materials in the United States. By investing in domestic lithium production and battery technology, GM is positioning itself to meet the growing demand for electric vehicles and contribute to a cleaner and more sustainable future.