GM invests $650M in lithium mining to lock down EV uncooked supplies • robotechcompany.com
Common Motors stated Tuesday it should make investments $650 million into Lithium Americas as a part of an settlement to develop a mine in Nevada, the most recent effort by the automaker to lock down a provide chain of key parts wanted to provide tens of millions of EVs.
The funding in uncooked supplies for batteries is the most important thus far, in accordance with GM. And it’s no marvel. Common Motors has a litany of all-electric sedans, SUVs, crossovers and vans which can be coming to market within the subsequent two years, together with the GMC Sierra EV, Cadillac Lyriq, Chevrolet Silverado EV, Chevrolet Blazer EV and Chevrolet Equinox. GM stated in November it expects to generate greater than $50 billion in income from gross sales of its 30 EV fashions in 2025, with revenue margins within the low to mid-single digits.
However that may’t occur if provide chain constraints forestall GM from producing the autos. The semiconductor chip scarcity that kicked off in 2020 is an expertise that each automaker is eager to keep away from, particularly because the business transitions to EVs.
GM and different automakers have made three way partnership agreements with battery producers to deliver manufacturing to the U.S. and guarantee sufficient cells can be found. GM has taken it a step additional by locking up a provide of lithium, a key element in EV batteries.
Lithium Americas estimates the lithium extracted and processed from the undertaking at Thacker Cross mine can assist manufacturing of as much as 1 million EVs per 12 months. Manufacturing at Thacker Cross is projected to start within the second half of 2026. Lithium Americas expects Thacker Cross to create 1,000 jobs in development and 500 in operations.
“GM has secured all of the battery materials we have to construct greater than 1 million EVs yearly in North America in 2025 and our future manufacturing will more and more draw from home sources like the positioning in Nevada we’re growing with Lithium Americas,” stated GM Chair and CEO Mary Barra. “Direct sourcing crucial EV uncooked supplies and parts from suppliers in North America and free-trade-agreement international locations helps make our provide chain safer, helps us handle cell prices, and creates jobs.”
The funding might be cut up into two tranches. The primary might be launched to Lithium Americas if sure situations are met together with a pending ruling in U.S. District Court docket. The second quantity might be made after Lithium Americas separates its U.S. and Argentina companies, the businesses stated.