Lithium Americas and General Motors Investment Update

(Reuters) – Lithium Americas announced that General Motors (NYSE:GM) has agreed to postpone a $330 million investment until the end of the year.

In January 2023, GM revealed a $650 million investment in Lithium Americas (NYSE:LAC) to aid the development of the Thacker Pass project in Nevada, which has the capacity to produce enough battery metal for 1 million electric vehicles annually. The first tranche of this investment was completed in February last year.

The lithium miner indicated on Friday that it is exploring alternative structures for the second tranche and has extended the closing date to December 20. If the company is unable to finalize the deal by this deadline, it will need to grant additional rights to GM.

“They are making good progress toward scaling commercial production. This agreement will support the successful completion of the project,” GM stated in an emailed response.

The conditions for this second tranche include the successful execution of a $2.26 billion loan agreement with the U.S. Energy Department, which Lithium Americas is keen to complete amid uncertainties raised by the upcoming November U.S. presidential election.

Republican presidential candidate Donald Trump has promised to “end the electric vehicle mandate,” and former Trump administration officials’ plans outlined in the Project 2025 document aim to shut down the Loans Program Office. This has compelled miners to finalize agreements before Joe Biden leaves office.

Toronto-listed shares of Lithium Americas fell by 6.3%.