GM invests in Lithium Americas to develop Thacker Pass mine | Global Mining Review
GM invests in Lithium Americas to develop Thacker Pass mine
Lithium Americas Corp. has announced that it has entered into a purchase agreement with General Motors Co. pursuant to which GM will make a US$650 million equity investment in Lithium Americas. In connection with the transaction, the company has provided an update on the construction plan for the Thacker Pass lithium project in Humboldt County, Nevada, including the release of an independent National Instrument 43-101 (“NI 43-101”) feasibility study.
Transaction Highlights:
The largest-ever investment by an automaker to produce battery raw materials, with GM to become Lithium Americas’ largest shareholder.
Lithium Americas to receive US$650 million equity investment from GM consisting of:
US$320 million first tranche investment for common shares representing 9.999% of Lithium Americas before separation.
US$330 million second tranche investment, contemplated to be invested in the company’s US business following the separation of its US and Argentine businesses.
After the first tranche investment, GM will receive exclusive access to Phase 1 production through a binding supply agreement and a right of first offer (ROFO) on Phase 2 production.
Investment supports the development of Thacker Pass, the largest known lithium resource in the US.
Project estimated to supply lithium needed for up to one million electric vehicles (EVs) per year.
Investment also supports the company’s previously announced separation by creating the foundation for an independent US business focused on Thacker Pass and a North American lithium supply chain.
Project Highlights:
Advancing Thacker Pass construction plan targeting 80 000 tpy of battery-quality lithium carbonate (Li2CO3) production capacity in two phases of 40 000 tpy, respectively (Phase 1 and Phase 2).
Phase 1 production expected to commence in 2H26.
Project life of 40 years (LOM) utilising less than 25% of the current measured and indicated (M&I) mineral resource estimate.
Proven and probable mineral reserves of 3.7 million t lithium carbonate equivalent (LCE) at an average grade of 3160 parts per million lithium (ppm Li).
M&I mineral resource estimate of 16.1 million t LCE at an average grade of 2070 ppm Li.
US$5.7 billion net present value (NPV) at 8% discount and 21.4% internal rate of return (IRR), after-tax when using a price assumption of US$24 000/t of Li2CO3.
Phase 1 and Phase 2 capital cost estimates of US$2.27 billion and US$1.73 billion, respectively, are based on cost estimates from 3Q23 and include a 13.1% contingency.
Awarded the engineering, procurement and construction management contract for the construction of Thacker Pass to Bechtel Corporation.
Thacker Pass is expected to create 1000 jobs during construction and 500 jobs during operations.
Joe joined Palladian Publications in September 2022 after graduating from Newcastle University with a geography degree, with his dissertation researching the emerging offshore wind industry in the Northeast.
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