GM Delays $330 Million Investment in Lithium Americas
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In a recent update, Lithium Americas announced that General Motors (GM:US) has agreed to push back a $330 million investment into the lithium mining company until the end of the year. This delay is part of a larger $650 million commitment GM made in January 2023 to support the development of Lithium Americas’ Thacker Pass project in Nevada.
The Thacker Pass project is significant, with the potential to supply enough lithium for 1 million electric vehicles each year. While the initial portion of GM's investment was finalized in February 2023, the second tranche has been deferred to December 20, 2024. This extension provides Lithium Americas additional time to explore alternative financing options.
The timing of this investment is crucial, as Lithium Americas is also working to finalize a $2.26 billion loan agreement with the U.S. Energy Department. The urgency around this agreement is heightened by the uncertainties surrounding the upcoming November U.S. presidential election. With Republican candidate Donald Trump promising to end the electric vehicle mandate and potential plans to close the Loans Program Office, the political landscape could significantly impact the project's funding and future.
Despite the challenges, GM remains confident about the progress of the Thacker Pass project. “They are making good progress toward scaling commercial production. This agreement will support the successful completion of the project,” GM said in a recent statement.
If Lithium Americas fails to finalize the deal by the new deadline, they will be required to offer GM additional rights. As the industry navigates these uncertainties, securing investment and financing remains a top priority for Lithium Americas and its partners.
This year, GM stock has had a rough patch, with Congressman Ro Khanna being the only congressional trader actively selling shares. He has sold nearly $266,000 worth through 21 trades. Recently, however, Khanna invested up to $30,000 in GM with two trades on June 14 and July 2, indicating a possible shift in his investment strategy.
