According to the terms of the investment agreement, General Motors will contribute $625 million to the new joint venture, acquiring a 38% asset-level ownership stake in Thacker Pass. The $625 million investment includes $430 million in direct cash funding to support the construction of Phase I of the lithium mine project and a $195 million letter of credit facility that can be used as collateral to support reserve account requirements under the DOE Loan. This marks the largest single investment by a U.S. automaker in the lithium sector and also represents General Motors' largest publicly disclosed investment in a battery raw material production company to date.

Lithium Americas will retain the remaining 62% ownership of the Thacker Pass lithium project and will contribute $387 million to the joint venture.

This joint venture transaction replaces the original investment agreement signed in January 2023 between General Motors and Lithium Americas for a $330 million investment in Phase II of Thacker Pass. At that time, General Motors signed a purchase agreement with Lithium Americas, declaring a $650 million equity investment in the company to aid in the construction and development of the Thacker Pass lithium project. This investment was divided into two tranches: the first tranche of $320 million was completed on February 16, 2023. In August of this year, both companies agreed to postpone the $330 million second tranche investment in the lithium mine company until the end of this year.

In mid-March of this year, the U.S. Department of Energy (DOE) conditionally committed to providing up to $2.26 billion in loans to Lithium Americas to fund the construction of the Thacker Pass lithium project. The $195 million letter of credit facility investment from General Motors in this joint venture can be used as collateral for the DOE loan. The mining company stated that it expects to close this loan from the U.S. Department of Energy in the coming weeks.

Jonathan Evans, President and CEO of Lithium Americas, said that General Motors' joint venture investment demonstrates continued support for the company's lithium projects and helps "unlock" the previously announced $2.3 billion DOE loan. "We will work closely with General Motors to advance towards the final investment decision, which we are targeting by the end of this year."

The Thacker Pass lithium project is one of the largest lithium resource projects in North America, with a target total capacity of 80,000 tons per year of battery-grade lithium carbonate, developed in two phases. Phase I, with a capacity of 40,000 tons per year, began construction in March 2023 and is expected to start production in the second half of 2026. The lithium output of the project is expected to supply enough for the annual manufacturing of 1 million electric vehicles in North America.

In January 2023, General Motors signed a purchase agreement with Lithium Americas and announced approximately $650 million in investments over two phases for the development of the Thacker Pass lithium mine project. At that time, this investment gave General Motors an exclusive purchase right for 100% of the lithium output of Phase I for 15 years, with all lithium carbonate produced in Phase I to be delivered exclusively to General Motors and the joint venture battery enterprise between General Motors and LGES, Ultium Cells.

Upon completion of the joint venture transaction between General Motors and Lithium Americas, General Motors will also extend the purchase agreement for Phase I of Thacker Pass to 20 years. In addition, General Motors will sign an additional 20-year purchase agreement for Phase II of Thacker Pass, procuring up to 38% of the lithium output from Phase II and retaining the right of first offer for the remaining lithium output.