Latest News

General Motors to contribute $625 mln to new JV with Lithium Americas

Canadian miner Lithium Americas stated on Wednesday General Motors will contribute $ 625 million to their brand-new joint venture for developing the Thacker Pass job in Nevada.

U.S. automakers are increase their output of EVs and hybrids and aiming to decrease their dependence on China for battery-related materials in a competitive market.

U.S.-listed shares of Lithium Americas were up 16.5% at $ 3.11 in premarket trade.

The Vancouver, Canada-based firm stated GM will get a 38%. asset-level ownership stake in Thacker Pass for $625 million,. which includes $430 million of direct money funding to support. the building and construction of Phase 1 and a $195 million letter of credit. center.

The brand-new contract replaces the postponed investment worth $330. million in August by both business.

Previously this year, the U.S. Department of Energy had planned. to provide Lithium Americas up to $2.26 billion to build the. Thacker Pass lithium job, which holds enough of the battery. metal to build 1 million electrical lorries each year.

The company said it expects to close the DOE loan in the. next few weeks and means to make the last investment decision. for the project by the end of the year.

Preliminary construction at the site in Humboldt County, just. south of Nevada's border with Oregon, started in March 2023. after Lithium Americas won a long-running and intricate court case. versus conservationists, ranchers and Indigenous communities.

The lithium miner said GM will also enter into an additional. 20-year offtake arrangement for up to 38% of production from Phase. 2 of Thacker Pass, upon closing of the transaction.

(source: Reuters)