KEY POINTS
- GM increased its investment in the Thacker Pass lithium mine by $950 million.
- The automaker is exploring additional critical minerals deals across North America.
- GM’s strategy focuses on partnerships to secure a stable EV supply chain.
General Motors (GM) is looking to further invest in North American sources of critical minerals for its electric vehicle (EV) production after boosting its investment in Nevada’s Thacker Pass lithium mine to nearly $1 billion.
The automaker has made it clear that it is focused on securing a stable supply chain for EV batteries and is exploring additional deals for key minerals like cobalt and nickel.
GM strengthens lithium supply with Nevada deal
Earlier this week, GM announced that it would form a joint venture with Lithium Americas to develop the Thacker Pass mine, the largest source of lithium in North America.
The company increased its investment in the project by an additional $325 million, bringing its total stake in the venture to $950 million. This move gives GM partial ownership of the mine and guarantees access to lithium production for at least 20 years.
Jeff Morrison, GM’s senior vice president of global purchasing and supply chain, stated that while the Thacker Pass deal secures a significant portion of the company’s lithium needs, GM remains open to pursuing additional critical minerals deals in North America.
“Our main goal is to build out a North American-based, Western-allied supply chain,” Morrison said.
Expanding critical minerals partnerships
In addition to the Thacker Pass project, GM has secured agreements for other key minerals used in EV production.
According to Mining.com, the company has a deal with Glencore to purchase cobalt and an investment in Queensland Pacific Metals for both nickel and cobalt. GM has also entered a lithium supply agreement with Arcadium Lithium.
Despite delays in some of its projects, such as its investment in Controlled Thermal Resources’ geothermal brine project in California, GM is maintaining its commitment to these ventures. Morrison reiterated the importance of partnerships in building a reliable mineral supply chain, noting that GM’s focus is on collaboration rather than becoming a mining company.
A long-term strategy for EV production
GM’s investment in critical minerals is part of a larger strategy to ensure the automaker has the resources needed to meet growing demand for electric vehicles.
As the EV market continues to expand, securing access to essential materials like lithium, cobalt, and nickel is crucial for maintaining production and meeting future targets.
While GM does not plan to take on full mining operations, the company’s approach of forming joint ventures and securing supply agreements reflects its commitment to building a robust supply chain for its EVs.
By investing in North American projects, GM is positioning itself to reduce its reliance on international suppliers and mitigate potential supply chain disruptions.
