"GM invests $650m in Lithium Americas to develop Thacker Pass mine"

" GM invests $650m in Lithium Americas to develop Thacker Pass mine \r\n\r\n \r\n \r\n \r\n \r\n \r\n\r\nShares in Lithium Americas soared on Tuesday morning after it announced that General Motors will invest $650 million in the company to help it develop the Thacker Pass lithium mine in northern Nevada. \r\n\r\nThe Canadian miner\u2019s stock was up 10% in premarket trading in New York after it unveiled GM\u2019s investment, which the companies say represents the largest-ever investment by an automaker to produce battery raw materials.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nLithium carbonate from Thacker Pass, the largest known lithium source in the US, will be used in GM\u2019s proprietary Ultium battery cell.\r\n\r\n\u201cDirect sourcing critical EV raw materials and components from suppliers in\u00a0North America\u00a0and free-trade-agreement countries helps make our supply chain more secure, helps us manage cell costs, and creates jobs,\u201d GM Chief Executive Mary Barra in a\u00a0 separate statement .\r\n\r\n\u201cThe 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,\u201d Lithium Americas CEO Jonathan Evans noted.\r\n\r\nThe investment will be split into two tranches. Funds for the first $320 million-tranche will be held in escrow until certain conditions are met, including the outcome of the Record of Decision ruling currently pending in the US District Court.\r\n\r\nThis figure grants GM exclusive rights to the first stage of lithium production at Thacker Pass and almost 10% of the miner\u2019s shares with a further $330 million to follow. The second payment will happen once the Thacker Pass mine has been separated from Lithium Americas\u2019 Argentine businesses, which will be called Lithium International, as it\u00a0 announced in November .\r\n\r\n\u201cThis investment is evidence of the thrust the IRA has provided to the US EV value chain,\u201d Jordan Roberts, Analyst at Fastmarkets NewGen said in an emailed statement. \u201cWe expect Thacker Pass to represent almost 20% of North America\u2019s processed\u00a0production\u00a0in 2032, giving GM a massive share of potential US lithium production.\u201d\r\n\r\nGM\u2019s move represents an important escalation in the battle among EV makers to secure battery metals. It also highlights a growing trend of integration between the automotive and mining industries.\r\n\r\nThe announcement comes on the heels of a US judge\u2019s comments indicating she would rule\u00a0 \u201cin the next couple of months\u201d \u00a0on whether former President Donald Trump erred in 2021 when he approved the lithium project.\r\n\r\nThe Vancouver-based miner, which has received all necessary permits to begin construction,\u00a0had expected a ruling\u00a0 by last September .\r\n Enough for 1 million EVs per year \r\nThe mine has the capacity to produce lithium for up to 1 million electric vehicles (EV) a year and is expected to create 1,000 jobs during construction and 500 permanent positions.\r\n\r\nLithium Americas is planning the open-pit project\u2019s production capacity to reach 60,000 tonnes a year of battery-grade lithium carbonate over a 46-year mine life, according to a 2018 pre-feasibility study.\r\n\r\nMeasured and indicated resources at Thacker Pass total 385 million tonnes averaging 2,917 parts per million (ppm) lithium for 6 million tonnes of lithium carbonate equivalent (LCE). Inferred resources are 147 million tonnes averaging 2,932 ppm for 2.3 million tonnes of LCE.\r\n\r\nWhile the world needs more and more lithium, investment in new supply has not kept pace with rising demand, which is expected to hit\u00a0 over 1 million tonnes \u00a0of lithium carbonate equivalent by 2025.\r\n\r\nGM shares were up about 5.4% at $38.24 in premarket trading. Along with the investment, GM also reported better-than-expected\u00a0 fourth-quarter earnings \u00a0and gave financial guidance for 2023 that topped analysts\u2019 estimates.\r\n\r\n \r\n \r\n \r\n "

"GM invests $650m in Lithium Americas to develop Thacker Pass mine"

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