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GM Delaying Completion Of Thacker Pass Mine Investment

Way back in January 2023, GM Authority reported that General Motors and Lithium Americas had entered a joint investment agreement into the Tracker Pass mine in Nevada to refine lithium extraction solutions. That being said, the latter party has announced that the former has delayed its second stage of investment until the end of the 2024 calendar year.

According to a report from Reuters, The General had agreed to a $650 million investment in Lithium Americas to develop the aforementioned Nevada mine, which is believed to hold enough battery materials to manufacture a million all-electric vehicles every year. Originally set to be dispersed in two stages, the Detroit-based automaker will now hold onto the final $330 million until the end of the year.

Photo of GM Ultium batteries.

For its part, Lithium Americas also stated that it’s currently exploring alternative structures for the investment, and has extended the date for a deal closure to December 20th, 2024. However, if the deal is not closed on their end by that date, the lithium mining company will be forced to grant additional rights to General Motors.

It’s worth noting that The General has not made any immediate public comments to this development.

As context, the conditions for the second portion of the investment included the successful execution of a $2.26 billion loan agreement with the United States Energy Department. With uncertainties surrounding the results of the U.S. presidential election, Lithium Americas is rushing to finish said investment by the end of the year.

In fact, given Former U.S. President Donald Trump’s promise to put an end to the EV mandate – along with plans laid out by former Trump administration officials in the Project 2025 document to close the Loans Program Office – companies like Lithium Americas are pushing to close out loan agreements before President Joe Biden leaves office early next year.

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Comments

  1. Well GM this is fine because you do know the Greenies will never give you credit for your EV’s and will eventually want to punish you for being involved in mining. BTW this is another great example of why the Dept of Energy should not exist.

    Reply
  2. GM just posted a 23 percent reduction in sales for the second quarter, maybe they just do not have the money!

    Reply

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