General Motors is investing nine figures in the electric vehicle supply chain.
- The US automobile company General Motors (GM) is investing 625 million US dollars (575.5 million euros) in the supply chain for electric vehicles.
- The funds will go to Lithium Americas Corp. help develop and operate a large lithium mine in Nevada, USA.
- Despite production cuts for electric vehicles, GM wants to strengthen the domestic lithium supply chain.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
The Detroit-based automobile manufacturer General Motors (GM) is investing in the domestic supply chain for batteries for electric vehicles. Canadian mining company Lithium Americas Corp. gave in one Press release announced that GM invested a total of 625 million dollars (approx. 574.5 million euros) to finance the mining of lithium carbonate. This is an important part of EV batteries.
So GM is investing in the lithium mine
The joint cash and credit venture will finance the development, construction and operation of the Thacker Pass lithium mine in Nevada. The US state is located in the western United States. At this mine, GM will acquire a 38 percent interest in the assets. This emerges from the press release.
The automobile manufacturer’s investment in the said Thacker Pass, the largest known source of lithium in North Americawill also help Lithium Americas obtain a $2.3 billion loan from the US Department of Energy. According to the mining company, this was first announced at the beginning of the year.
It is also reported that GM will provide $430 million (approx. €396 million) in cash to finance the construction of Phase 1 of the mine. A credit facility of $195 million (approx. 180 million euros) will also be used as security for the DOE loan, according to the press release.
(A DOE loan is a loan made by the U.S. Department of Energy (DOE). These loans are typically offered through grant programs to support projects that promote innovative energy technologies, advance renewable energy, or improve energy efficiency .)
“Our relationship with GM has been significantly strengthened through this joint venture,” said Jonathan Evans, President and CEO of Lithium Americas. “We continue to share a common goal of developing a robust domestic lithium supply chain by advancing the development of Thacker Pass,” Evans said in the company’s press release.
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Strengthening the domestic supply chain
“Today’s joint venture announcement is a win for GM and Lithium Americas,” Evans continued. Jeff Morrison, GM’s senior vice president of global purchasing and supply chain, said in Wednesday’s press release that investing directly in the raw materials needed for EVs will help the company develop a resilient supply chain. It also helps “manage battery cell costs, provide value to our customers and investors, and create jobs.”
GM’s investment in the EV supply chain comes after the automaker announced over the summer that it would reduce its 2024 production target for EVs by 50,000 units. The reason for this was a decline in consumer demand for battery-powered vehicles and a decline in sales.
Future of lithium demand
Still, GM’s investment will help the automaker secure a steady domestic supply of battery metals.
Also last week, despite the auto industry’s recent retreat from EV production, lithium miner Rio Tinto agreed to acquire Arcadium Lithium for $6.7 billion. This is in anticipation that lithium demand will increase in the coming decade, as the Wall Street Journal reported.
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