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General Motors and Lithium Americas Corp. have announced a joint venture that will see GM provide $625 million in cash and credit to the Canadian mining company for the development of a lithium carbonate mining operation in Nevada. This partnership replaces a previously planned equity investment by GM into Lithium Americas. The goal is to secure raw materials like lithium from the U.S. to support GM’s electric vehicle business.
The announcement led to a 23% increase in Lithium Americas’ shares, closing at $3.29. GM will hold a 38% interest in the Thacker Pass project, with investments totaling $330 million in cash at closing, $100 million at a final investment decision, and a $195 million letter of credit facility.
CEO Jonathan Evans expressed optimism about the strengthened relationship with GM through this joint venture. The collaboration follows GM’s $320 million investment in Lithium Americas in February 2023, which involved acquiring approximately 15 million common shares. An additional $330 million investment was delayed in August to explore alternative structures.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
