General Motors (GM) Holdings has agreed to form a joint venture (JV) with Lithium Americas to develop Lithium Americas’ Tucker Pass lithium project in Humboldt County, Nevada.
Under the agreement, GM will acquire a 38% stake in Tucker Pass for a total consideration of $625 million, consisting of $430 million in cash and a $195 million letter of credit facility to support Phase 1 construction. I will do it.
The facility will serve as collateral for reserve account requirements related to a $2.3 billion loan from the U.S. Department of Energy (DOE) announced earlier this year.
The joint venture transaction replaces the second tranche of a $330 million equity investment commitment from GM that was first announced in January 2023.
The new arrangement builds on GM’s previous $320 million investment in February 2023, in which the company acquired approximately 15 million Lithium Americas common shares.
Additionally, GM has extended its existing offtake agreement to 20 years to match the expected maturity of the DOE loan, securing up to 100% of production from Phase 1 of Tucker Pass.
Lithium Americas will contribute $387 million for a 62% ownership interest in the project and will manage the project on behalf of both parties.
Following the closure of the joint venture, GM will enter into a 20-year offtake agreement for up to 38% of the second phase’s production.
Initial offer rights for remaining Phase 2 volumes will be maintained.
A board of directors will be established to oversee the joint venture, approve the budget and business plan, and implement policies that meet GM’s vendor requirements, including human rights policies.
GM’s investment is subject to certain prior conditions, including those related to the DOE financing agreement.
“As we continue to pursue our mutual goal of building a robust domestic lithium supply chain by advancing the development of the Tucker Pass,” said Jonathan Evans, president and CEO of Lithium Americas, “This joint venture has significantly strengthened our relationship with GM.”
“Today’s joint venture announcement is a win-win for GM and Lithium Americas. GM’s joint venture investment demonstrates GM’s continued support and is a win-win for GM and Lithium Americas. Help unlock DOE financing.
“We will continue to work closely with GM to move toward a final investment decision, targeted by the end of the year.”
In April of this year, Lithium Americas announced a $275 million public offering for the Tucker Pass Lithium Project.
“General Motors Invests $625 Million in Lithium America Joint Venture” was originally created and published by Mining Technology, a brand owned by GlobalData.
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