General Motors Invests $625 Million in Thacker Pass

General Motors has pledged $625 million in cash and credit toward constructing a lithium mine in Nevada’s Humboldt County, marking a significant financial boost for the project. The Thacker Pass mine, operated by Canadian company Lithium Americas, is set to increase the country’s stock of lithium batteries essential for electric vehicles (EVs).

The Bureau of Land Management approved the project in January 2021, despite opposition from local tribes who lost a legal battle to block the mine on the site of an 1865 Native American massacre about 25 miles from the Nevada-Oregon border.

The investment represents a crucial step for GM, which seeks to secure critical materials for its EV supply chain.

Jeff Morrison, GM’s senior vice president for global purchasing and supply chain, stated, “We’re pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain. Sourcing critical EV raw materials, like lithium, from suppliers in the U.S., is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”

GM will own a 38 percent stake in the Thacker Pass project as part of the deal. The investment has already driven up the stock value of Lithium Americas, which benefits from increasing interest in domestic lithium production.

Out of GM’s $625 million pledge, $430 million will be a direct cash payment to support phase one of construction, while the remaining funds will serve as credit and collateral. This backing is expected to help Lithium Americas secure a $2.3 billion conditional loan from the U.S. Department of Energy, with final approval expected in the coming weeks.

Once operational in 2028, Thacker Pass will join a small but growing list of functional lithium mines in the U.S., including Albemarle’s Silver Peak mine in Esmeralda County. The project promises to create jobs and strengthen the domestic EV market, but it also faces criticism from local Native communities who see the site as sacred ground.