General Motors has been developing electric vehicles for last few years, many of them are anticipated to be more affordable than its competitors.
Now that the Thacker Pass mine in Nevada, regarded as the largest source of lithium in the United States and the third largest on the planet, is being developed, the Big Three automakers have secured significant new deals to work with Lithium Americas on it.
Battery components will become harder to come by as carmakers like General Motors push ahead with their shift to electric vehicles to catch up to Tesla.
Although there are plenty of materials, the development of mines and the refinement of materials will almost certainly limit the number of electric cars that different manufacturers can produce while also maintaining high demand and prices.
GM, the biggest investor in Lithium America
In exchange for a supply contract with Lithium Americas, GM has agreed to invest $650 million in equity.
GM is Lithium America’s biggest investor and made the most significant investment ever, particularly for battery raw materials.
Since the materials will be mined in the US, not only will the agreement guarantee that the US carmaker has a working supply of lithium for its sizable lineup of EVs, but GM vehicles are likely to qualify for the full, updated $7,500 US federal EV tax credit in future.
To source lithium carbonate for GM’s Ultium battery cells, Lithium Americas and GM will collaborate to develop the Thacker Pass mine.
Lithium extraction from the completed site is anticipated to provide enough material for 1 million electric vehicles annually.
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
Mary Barra, CEO of GM stated on partnership with Lithium Americas
Barra continued by stating that buying the battery components from North American vendors will increase the safety of GM’s supply chain.
Local employment opportunities
Additionally, it will reduce costs, support local employment opportunities, and abide by the new EV tax credit guidelines for sourcing battery materials established by the US government.
General Motors has been working to design and develop new electric vehicles over past few years, and it still hopes to surpass Tesla by 2025 as the most important ‘EV manufacturer’ in the world.
The business has yet to have many results to show for its plans, though. For many years, it produced the Chevrolet Bolt EV, and more recently, it began producing the Bolt EUV, which uses the same platform.
Recent additions include the expensive GMC Hummer EV pickup truck and the luxurious electric crossover Cadillac Lyriq.
GM to produce more affordable EVs
The automaker expects to be able to offer a variety of budget-friendly EVs in the future, such as electric versions of the Equinox and Blazer. The goal is to cater to all types of vehicle consumers with diverse needs and incomes with fully electric options.
Production at the Thacker Pass mine is expected to begin in H2 2026, at which point GM will secure exclusive access to all Phase 1 production.
In addition, the automaker will receive the first offer to ensure Phase 2 production. According to Lithium Americas, the project will generate 1,000 work opportunities and 500 active jobs.
