- Thacker Pass in Nevada is
the largest known source of lithium in the United States
- GM to receive exclusive access to Phase 1
production
- Material sourced from Lithium Americas will help support EV
eligibility for consumer incentives under the U.S. clean energy tax
credits
DETROIT AND VANCOUVER, BC, Jan. 31,
2023 /PRNewswire/ -- General Motors Co. (NYSE: GM)
and Lithium Americas Corp. (TSX: LAC and NYSE: LAC) announced today
they will jointly invest to develop the Thacker Pass mine in
Nevada, which is the largest known
source of lithium in the United
States and the third largest in the world.
Under the agreement, GM will make a $650
million equity investment in Lithium Americas, which
represents the largest-ever investment by an automaker to produce
battery raw materials. Lithium Americas estimates the lithium
extracted and processed from the project can support production of
up to 1 million EVs per year.
Lithium carbonate from Thacker Pass will be used in GM's
proprietary Ultium battery cells. Lithium is a key material in
lithium-ion batteries and stands up well to repeated charging and
discharging (including enabling fast charging), delivers higher
energy density, and offers more usable capacity than other battery
types.
GM is launching a broad portfolio of trucks, SUVs, luxury
vehicles and light commercial vehicles using the Ultium Platform,
including the GMC HUMMER EV Pickup and SUV, GMC Sierra EV, Cadillac
LYRIQ, Cadillac CELESTIQ, Chevrolet Silverado EV, Chevrolet Blazer
EV, Chevrolet Equinox EV, BrightDrop Zevo 400 and BrightDrop Zevo
600.
"GM has secured all the battery material we need to build more
than 1 million EVs annually in North
America in 2025 and our future production will increasingly
draw from domestic resources like the site in Nevada we're developing with Lithium
Americas," said GM Chair and CEO Mary
Barra. "Direct sourcing critical EV raw materials and
components from suppliers in North
America and free-trade-agreement countries helps make our
supply chain more secure, helps us manage cell costs, and creates
jobs."
"The agreement with GM is a major milestone in moving Thacker
Pass toward production, while setting a foundation for the
separation of our U.S. and Argentine businesses," said Lithium
Americas President and CEO Jonathan
Evans. "This relationship underscores our commitment to
develop a sustainable domestic lithium supply chain for electric
vehicles. We are pleased to have GM as our largest investor, and we
look forward to working together to accelerate the energy
transition while spurring job creation and economic growth in
America."
GM's investment will be split between two tranches. The funds
for the first tranche will be held in escrow until certain
conditions are met, including the outcome of the Record of Decision
ruling currently pending in U.S. District Court. If those
conditions are met, the funds will be released and GM will become a
shareholder in Lithium Americas. The escrow release is expected to
occur no later than the end of 2023. The second tranche investment
is expected to be made into Lithium Americas' U.S.-focused lithium
business following the separation of its U.S. and Argentina businesses and is contingent on
similar conditions, including Lithium Americas securing sufficient
capital to fund the development expenditures to support Thacker
Pass.
Production at Thacker Pass is projected to begin in the second
half of 2026. In connection with the closing of the first tranche
investment, GM will receive exclusive access to Phase 1 production
through a binding supply agreement and has the right of first offer
on Phase 2 production. Lithium Americas expects Thacker Pass to
create 1,000 jobs in construction and 500 in operations.
GM has announced four U.S. cell plants with annual capacity of
160 gigawatt hours, including the Ultium Cells joint venture plant
with LG Energy Solution in Warren,
Ohio, which is in production, and additional JV sites in
Spring Hill, Tennessee and
Lansing, Michigan that are
scheduled to open in 2023 and 2024, respectively. The first three
Ultium Cells plants are expected to create 6,000 jobs in
construction and 5,000 in operations.
GM is currently building EVs in two Michigan plants, one Tennessee plant and one Ontario plant, and its suppliers are investing
to create a robust North
America-focused supply chain for EV raw materials, processed
material and components, with major projects under way in
California, Texas, Ohio
and Quebec.
General Motors (NYSE:GM) is a global company focused
on advancing an all-electric future that is inclusive and
accessible to all. At the heart of this strategy is the Ultium
battery platform, which will power everything from mass-market to
high-performance vehicles. General Motors, its subsidiaries and its
joint venture entities sell vehicles under
the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands.
More information on the company and its subsidiaries,
including OnStar, a global leader in vehicle safety and
security services, can be found
at https://www.gm.com.
Lithium Americas (TSX: LAC and NYSE: LAC) is focused
on advancing lithium projects in Argentina and the
United States to production. In Argentina, Caucharí-Olaroz is advancing
towards first production and Pastos Grandes represents regional
growth. In the United States,
Thacker Pass has received its Record of Decision and is advancing
towards construction.
Cautionary Note on Forward-Looking
Statements: This press release and related
comments by management may include "forward-looking statements"
within the meaning of the U.S. federal securities laws.
Forward-looking statements are any statements other than statements
of historical fact. Forward-looking statements represent our
current judgment about possible future events and are often
identified by words such as "anticipate," "appears,"
"approximately," "believe," "continue," "could," "designed,"
"effect," "estimate," "evaluate," "expect," "forecast," "goal,"
"initiative," "intend," "may," "objective," "outlook," "plan,"
"potential," "priorities," "project," "pursue," "seek," "should,"
"target," "when," "will," "would," or the negative of any of those
words or similar expressions. In making these statements, we rely
upon assumptions and analysis based on our experience and
perception of historical trends, current conditions, and expected
future developments, as well as other factors we consider
appropriate under the circumstances. We believe these judgments are
reasonable, but these statements are not guarantees of any future
events or financial results, and our actual results may differ
materially due to a variety of factors, many of which are described
in our most recent Annual Report on Form 10-K and our other filings
with the U.S. Securities and Exchange Commission. We caution
readers not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date they are made,
and we undertake no obligation to update publicly or otherwise
revise any forward-looking statements, whether as a result of new
information, future events, or other factors that affect the
subject of these statements, except where we are expressly required
to do so by law.
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SOURCE General Motors Co.