Nevada lithium mine gets $625M boost from auto manufacturer
An auto manufacturer has pledged $625 million in cash and credit toward the construction of a lithium mine in Nevada’s Humboldt County, marking an important financial boost to the project that will increase the country’s stock of lithium batteries needed for electric vehicles.
The Bureau of Land Management approved Canadian company Lithium Americas’ Thacker Pass mine in January 2021. That wasn’t without outcry from tribes in the area, who lost a legal bid to stave off the mine, which will be built on a site where tribes say an 1865 massacre occurred about 25 miles from the Nevada-Oregon border.
The company that is bankrolling the project in a joint venture is Detroit-based General Motors, a car manufacturer for brands such as Chevrolet, Buick, GMC and Cadillac.
“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,” said Jeff Morrison, General Motors’ senior vice president for global purchasing and supply chain, in a statement. “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.”
General Motors will own a 38 percent stake in the project. Reports have shown that the deal already has skyrocketed the mining company’s stock share value — a win for the company as the price of lithium and EV batteries continues to plummet.
Lithium Americas said $430 million is a direct cash payment to support phase one of construction, while the remainder of the funds will be held as a form of credit and collateral that will help the company access the U.S. Department of Energy’s $2.3 billion conditional loan dedicated to Thacker Pass.
The company said it expects to close the federal loan in the next few weeks. Thacker Pass will be fully operational in 2028, according to executives, joining the short list of the country’s functional lithium mines, alongside Albemarle’s Silver Peak in Nevada’s Esmeralda County.
Contact Alan Halaly at ahalaly@reviewjournal.com. Follow @AlanHalaly on X.