General Motors (GM) has significantly increased its investment in a key lithium project, raising its total commitment to nearly $1 billion as it aims to secure a long-term supply of the critical metal essential for electric vehicle (EV) battery production.
The US automaker has raised its stake in Vancouver-based Lithium Americas to $945 million from an initial $650 million—a 45% increase—marking the largest investment by a US carmaker in a lithium project, according to Lithium Americas.
Announced on Wednesday, GM will form a joint venture with Lithium Americas to develop the Thacker Pass mine in Nevada, with shares of the Canadian miner surging 22% following the news.
As part of the agreement, GM will invest $625 million—comprising $430 million in cash and $195 million in letters of credit—securing a 38% stake in the Thacker Pass project. Lithium Americas will retain a 62% stake. This deal replaces GM’s earlier plan to invest $330 million in the mine. Previously, GM had invested $320 million in the project, which had provided the company with a 7% stake in Lithium Americas.
The partnership also grants GM exclusive rights to the first 20 years of lithium production from the mine, with an option to acquire up to 38% of the second phase of production under a future 20-year offtake agreement.
This deal follows the US government's announcement of a $2.3 billion loan to support the development of the Thacker Pass mine, which is expected to produce enough lithium to supply batteries for 800,000 electric vehicles.
GM’s expanded investment aligns with its broader strategy to lead the EV battery sector, as the company seeks to lessen its reliance on China and reduce battery costs. Jeff Morrison, GM’s senior vice president of global purchasing and supply chain, emphasized that sourcing critical materials like lithium from domestic suppliers would help GM manage costs, create jobs, and deliver value to customers and investors.
The push to secure battery metals has intensified competition among automakers like GM and Ford, with both companies forging supply deals as they ramp up their EV production plans.
Lithium Americas CEO Jonathan Evans said the strengthened partnership with GM underscores their shared commitment to building a robust domestic lithium supply chain amid growing global demand for EV batteries.
