General Motors (GM) and Lithium Americas Corp. announced on Oct. 16 that they are entering a joint venture (JV) to develop the Thacker Pass lithium carbonate project, which is located in northwestern Nevada, close to the Oregon border. GM will supply US$625 million in cash and credit to the TSX-listed, Vancouver-based mining company in exchange for a 38 per cent asset-level stake in Thacker Pass, while Lithium Americas will offer US$387 million of funding to the JV in exchange for 62 per cent ownership of the project. Lithium Americas will also manage the project on behalf of the JV. 

This recent deal builds on a US$320-million investment GM made in Lithium Americas in February 2023, in which GM acquired 15 million common shares in the company. 

According to Lithium Americas, this recent funding announcement will be the largest publicly announced investment in a lithium carbonate project to come from a U.S. original equipment manufacturer.  

Of GM’s recent investment, US$430 million of direct cash funding will support the construction of the first phase of the mine, while US$195 million in credit will serve as collateral for reserve account requirements under a previously approved loan from the U.S. Department of Energy (DOE).  

Back in March, the U.S. DOE offered a conditional commitment for a US$2.26 billion loan under its Advanced Technology Vehicles Manufacturing loan program to fund the construction of Thacker Pass. Lithium Americas anticipates that the DOE loan will close in the coming weeks and a final investment decision for the project is expected by the end of this year. 

Additionally, the new agreement will extend GM’s current Thacker Pass offtake agreement with Lithium Americas, which grants GM the right to up to 100 per cent of production volumes from the first phase of the project for 20 years. Upon completion of the JV, GM intends to establish another 20-year offtake agreement for up to 38 per cent of output from the project’s second and final phase. The expected lifespan of the Thacker Pass open pit mine is 40 years.  

“Our relationship with GM has been significantly strengthened with this joint venture as we continue to pursue a mutual goal to develop a robust domestic lithium supply chain by advancing the development of Thacker Pass,” said Jonathan Evans, president and chief executive officer of Lithium Americas, in an Oct. 16 press release. 

“Today’s joint venture announcement is a win-win for GM and Lithium Americas. GM’s JV investment demonstrates their continued support and helps us to unlock the previously announced US$2.3 billion DOE loan. We will be working closely with GM to advance towards the final investment decision, which we are targeting by the end of the year.” 

According to Lithium Americas, Thacker Pass is the largest known measured and indicated lithium resource in North America. The project contains 385 million measured and indicated tonnes grading 2,917 parts per million of lithium. 

Initial construction at the Thacker Pass site commenced in March 2023. Lithium Americas is now focused on progressing detailed engineering, which is currently around 40 per cent complete. Project site preparation for major earthworks has been finalized and the process plant area is now being excavated, which is around 50 per cent complete, in preparation for concrete placement, which is estimated to begin by mid-2025.