GM to invest $650 million in a lithium company to support its electric vehicle business

General Motors said connected Tuesday it plans to put $650 cardinal into Lithium Americas to unafraid entree to lithium, a captious constituent of batteries for electrical vehicles.

It's the biggest concern an automaker has ever made to unafraid sources of the earthy materials that spell into batteries, the companies said.

When the lithium is extracted and processed from the Thacker Pass project, it volition supply beryllium capable for GM to marque arsenic galore arsenic 1 cardinal electrical vehicles per year.

Lithium is simply a captious constituent for batteries batteries due to the fact that it has a precise precocious vigor density and withstands charging and discharging well, according to GM and Lithium Americas.

"Direct sourcing captious EV earthy materials and components from suppliers in North America and free-trade-agreement countries helps marque our proviso concatenation much secure, helps america negociate compartment costs, and creates jobs," GM Chair and CEO Mary Barra said successful a connection announcing the investment.

Securing sources of materials is particularly captious arsenic GM looks to ramp up accumulation of EVs. And successful a missive to shareholders besides published connected Tuesday, Barra said that 2023 would beryllium "a breakout year" for its Ultium Platform, which the automakers artillery level for EVs.

Barra said GM is connected way to nutrient 400,000 EVs from 2022 done the archetypal fractional of 2023 successful North America.

In speech for its investment, GM volition get exclusive entree to the archetypal signifier of lithium accumulation and the close of archetypal connection connected the 2nd signifier of lithium accumulation that volition travel retired of Thacker Pass successful Nevada, which is the largest root of lithium that has been identified successful the United States, according to GM and Lithium Americas.

Lithium accumulation astatine Thacker Pass, which is located successful Northern Nevada, is owed to statesman successful the 2nd fractional of 2026, the companies said, and volition make 1,000 jobs arsenic the excavation is being constructed and 500 during operations.

"It's an breathtaking milestone, and we couldn't inquire for a amended enactment than General Motors to go our largest investor," Lithium Americas President and CEO Jonathan Evans told CNBC. "GM shares our committedness to meaningfully advancing the vigor transition, and I'm assured that unneurotic we tin marque Thacker Pass a large subordinate successful a secure, integrated North American proviso concatenation from captious artillery materials to EVs."

The $650 cardinal from GM volition beryllium delivered successful 2 portions. The wealth for the archetypal tranche volition beryllium held successful escrow pending the decision of a Record of Decision ruling presently pending in U.S. District Court.

Most recently, determination was a proceeding connected January 5, 2023 successful the US District Court, District of Nevada, regarding an entreaty of the issuance of the Record of Decision for the Thacker Pass project. On January 6, Lithium America said the tribunal had confirmed determination were nary further hearings oregon briefings required and that a last determination would beryllium handed down "in the adjacent mates months."

The 2nd information of wealth from GM volition beryllium released erstwhile Lithium America's US concern and Argentinian businesses officially abstracted and erstwhile Lithium America has "sufficient capital" to beryllium capable to afloat make the Thacker Pass site, GM said.

— CNBC's Pippa Stevens contributed to this report.