Just a couple of years ago, EV demand was high and automakers were planning on shifting toward electrification in a major way, which means that large amounts of raw materials would be needed. Much of that effort involved mining things like lithium in the U.S., rather than continuing to get that raw material used in many EV batteries from China. Now, with demand for EVs softening, some of those plans have been put on ice, including a few supported by Ford. However, a joint-venture lithium project from Ford rival General Motors now has some official backing from the U.S. government.
According to GM Authority, the U.S. Department of Energy (DOE) is set to acquire a 5 percent ownership stake in Lithium Americas, which is GM’s joint-venture partner. The two entities announced in 2023 that they intended to partner up on the Thacker Pass lithium mine project in Nevada, which the DOE will also acquire five percent of. That particular project is set to become to largest source of metal lithium in the Western Hemisphere.
The Thacker Pass lithium mine project has thus far survived through multiple Presidential terms, having originally been approved by Donald Trump during his first stint in the White House, and then it was buoyed by a $2.26 billion dollar loan under his successor, Joe Biden – though Trump has since renegotiated those terms amid falling lithium prices. The project is estimated to cost around $2.93 billion to complete, with initial operations set to begin in 2028.
GM previously invested $625 million of its own money into Lithium Americas last year, which gave it a 38 percent stake in the company, along with long-term lithium material purchasing rights. When the Thacker Pass mine opens, it’s expected to produce around 40,000 metric tons of lithium carbonate each year – enough to supply batteries for 800,000 EVs. Currently, the U.S. produces less than 5,000 tons of lithium annually.
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