After Nevada lithium deal, GM eyes other sources for EV minerals supply
By Ernest Scheyder
Oct 17 (Reuters) -General Motors GM.N is eyeing further North American investments in lithium and other critical minerals used to build electric vehicles after boosting its investment in a Nevada mine to nearly $1 billion earlier this week, an executive said on Thursday.
The U.S. automaker on Wednesday said it would form a joint venture with Lithium Americas LAC.TO to develop the Thacker Pass lithium mine, North America's largest source of the battery metal.
The move increases GM's investment in the project by an additional $325 million to $950 million after an initial investment announced last year. It also gives the automaker a partial ownership stake in the mine and doubles its access to production to at least 20 years.
While the Thacker Pass JV should supply GM with a "significant" amount of its lithium, the company is open to other critical minerals deals on the continent, Jeff Morrison, GM's senior vice president of global purchasing and supply chain, said in an interview on Thursday.
A majority of GM's deals are for minerals supply, not necessarily JVs, and the automaker likely would continue that approach, he added.
"We don't want to become a mining company," Morrison said. "Our main goal is to build out a North American based, Western-allied, reliant supply chain. To do that, we have to pick partners and assets and figure out what they need to do to industrialize and be successful."
GM also has agreements to buy cobalt from Glencore GLEN.L, an investment in nickel and cobalt miner Queensland Pacific Metals QPM.AX, and a lithium supply deal with Arcadium Lithium ALTM.N, among others.
The automaker in 2021 invested in Controlled Thermal Resources Hell's Kitchen geothermal brine project in California, although that project has experienced delays.
Morrison said GM is "still working with them and still staying close with them."
Reporting by Ernest Scheyder
Editing by Bill Berkrot
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
