DETROIT — General Motors says it is the biggest ever investment in battery raw material production by an automaker as it prepares to ramp up production of more electric vehicles in the next few years.
GM announced Tuesday that it has acquired a $650 million stake in Lithium Americas Corp. and will work with the company to jointly develop the Thacker Pass lithium mine in Nevada. Lithium Americas said GM will be its largest shareholder with a nearly 10% stake.
According to Lithium Americas, the mine will produce enough lithium for as many as one million EVs a year. GM plans to use lithium carbonate from the Nevada project in his Ultium battery cells.
GM CEO Mary Barra told analysts on the automaker’s fourth-quarter earnings call. “We will continue to pursue strategic supply agreements and partnerships to further secure our long-term needs and drive investment across the United States and North America.”
GM said it signed a supply deal to secure all the battery raw materials needed to build one million EVs in North America by 2025 and is currently working on a supply deal for 2026 and beyond. I’m here. Production at the Thacker Pass mine is expected to start in the second half of 2026, the companies said. GM said it has a binding contract that gives it exclusive access to the first phase of production and an agreement that gives it rights to the first offer in the second phase.
GM’s investment will be made in two parts, with the first part held in escrow until certain conditions are met. This is expected to be done by the end of this year. The remainder will follow after Lithium America splits its US business from its Argentina business.
“The agreement with GM is an important milestone in moving Thacker Pass into production and lays the groundwork for separating our U.S. and Argentina operations,” said Jonathan Evans, CEO of Lithium Americas, in a statement. “This relationship underscores our commitment to developing a sustainable domestic lithium supply chain for electric vehicles. We are pleased to have GM as our largest investor.” We look forward to working together to accelerate the energy transition while spurring job creation and economic growth in the United States.”