GM conditionally agrees to invest $650M in NV lithium mine

GM conditionally agrees to invest $650M in NV lithium mine

SeattlePI.com

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RENO, Nev. (AP) — General Motors Co. has conditionally agreed to invest $650 million in Lithium Americas Corp. in a deal that will give GM exclusive access to the first phase of a mine planned near the Nevada-Oregon line with the largest known source of lithium in the U.S.

The equity investment the companies announced jointly on Tuesday is contingent on the Thacker Pass project clearing the final environmental and legal challenges it faces in federal court in Reno, where conservationists and tribal leaders are suing to block it.

Lawyers for the mining company and the U.S. government told a judge during a Jan. 5 hearing the project is critical to meeting the growing demand for lithium to make electric vehicle batteries — a key part of President Joe Biden’s push to expedite a transition from fossil fuels to renewable energy and help reduce greenhouse gas emissions.

GM said Tuesday's announcement marks the largest-ever investment by an automaker to produce battery raw materials.

Lithium Americas estimates the lithium extracted and processed from the project atop an ancient volcano about 200 miles (321 kilometers) northeast of Reno can support production of up to 1 million electric vehicles annually. It's the third largest known lithium deposit in the world, the company said.

“The agreement with GM is a major milestone in moving Thacker Pass toward production,” Lithium Americas President and CEO Jonathan Evans said in the joint statement Tuesday.

“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,” he said.

GM also reported Tuesday that rising factory output led to strong U.S. sales at the end of last year, pushing its fourth-quarter net...

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