General Motors is delaying its scheduled second investment in an ambitious lithium-mining project in Nevada. The decision follows GM’s recent one-year postponement of the production start for an EV battery plant joint-venture with Samsung SDI.
The automaker announced in January 2023 that it had made a $650-million equity commitment to Lithium Americas, based on that company’s plan to extract lithium ore from clay at a site called Thacker Pass. It is estimated that site is “the largest known measured and indicated lithium resource in North America,” with enough material to supply production of batteries for 1 million electric vehicles per year.
GM now has agreed with the miner to extend the date for the second, $330-million share purchase until December 20, 2024. From the start, GM’s second investment has been subject to specific conditions, including execution of a $2.26-billion, U.S. Dept. of Energy loan.
Lithium Americas also noted it is exploring “alternative structures for GM’s additional investment in a mutually beneficial manner.”
“Our relationship with GM has been built on collaboration and a mutual goal to develop a robust domestic lithium supply chain,” stated Lithium Americas president and CEO Jonathan Evans. “We are fortunate to have GM’s partnership as we finalize the DOE Loan and GM investment prior to making the final investment decision later this year.”
At the time of the initial investment automakers like GM were anxious to secure raw materials for the batteries needed to support a wide-scale conversion of passenger and commercial vehicles to electric models – as anticipated by their own production programs.
Now, as EV sales have leveled, and the scope of federal incentives to buyers is coming into question, automakers have started to adjust their electrification plans accordingly, aiming to offer more lower-cost models and more hybrid-electric options.
"They are making good progress toward scaling commercial production. This agreement will support the successful completion of the project," according to a GM statement published by Reuters.
