Lithium News Round up for the Third Week of October 2024
Notable and interesting news about the lithium industry.
Been a busy two weeks for lithium news from mines in Nevada to tax credits so let’s jump in.
Lithium Americas revamps Thacker Pass deal with GM in new $625 million JV
On October 15, 2024, Lithium Americas Corp. (LAC) and GM Holdings (a subsidiary of General Motors focused on investments related to EV and battery materials) agreed to form a joint venture to fund and develop LAC’s Thacker Pass lithium project in Nevada. The agreement replaces GM Holdings’ prior Tranche 2 investment in Lithium Americas with a direct investment in Lithium Nevada Ventures LLC (LNV), a new subsidiary of LAC.
The joint venture between GM Holdings and Lithium Nevada Ventures (LNV) will focus on developing, constructing, and operating the Thacker Pass project, one of the largest known lithium deposits in the United States. As part of the arrangement, GM Holdings will contribute a total of $430 million to LNV. The funding breakdown includes:
$330 million in initial capital, paid at the joint venture’s closing.
$100 million in additional capital, payable upon LNV’s board approval of a final investment decision for Thacker Pass.
Up to $195 million in letters of credit to further support the project as it advances.
In return for this financial commitment, GM Holdings will acquire a 38% ownership interest in LNV, securing its stake in the Thacker Pass project’s lithium output. This arrangement directly supports GM’s EV production goals by securing a stable domestic lithium supply, critical for battery production. The Thacker Pass project has a lot of potential for strengthening the U.S. domestic lithium supply chain, which is a huge step towards reducing reliance on international sources. With lithium sourced from Nevada, we’re looking at a more secure and steady supply for the growing EV market. This could have a significant impact on reducing overall battery costs, helping to make EVs more affordable over time.
Rhyolite Ridge Lithium-Boron Project gets final permit approval from federal government; construction planned for 2025
The Rhyolite Ridge Lithium-Boron Project recently got the green light from the federal government to move ahead, which is a big deal for boosting domestic lithium supplies.