General Motors (NYSE: GM) and Lithium Americas (NYSE: LAC) have announced a joint investment to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world. 

Under the agreement, GM will make a $650 million equity investment in Lithium Americas to produce battery raw materials for the automaker's proprietary Ultium battery cells. Lithium is a key material in lithium-ion batteries and offers higher energy density and more usable capacity compared to other battery types. The lithium carbonate from Thacker Pass will support production of up to 1 million EVs annually. 

The investment is split into two tranches and is expected to close by the end of 2023. GM will receive exclusive access to Phase 1 production and has the right of first offer on Phase 2. The Thacker Pass mine is projected to begin production in 2026.

GM Chair and CEO Mary Barra stated: "GM has secured all the battery material we need to build more than 1 million EVs annually in North America in 2025 and our future production will increasingly draw from domestic resources like the site in Nevada we're developing with Lithium Americas.”

Lithium Americas President and CEO Jonathan Evans added: "The agreement with GM is a major milestone in moving Thacker Pass toward production, while setting a foundation for the separation of our U.S. and Argentine businesses."

General Motors is a global company focused on advancing an all-electric future, which will power everything from mass-market to high-performance vehicles.

Lithium Americas is a lithium mining company, focused on advancing lithium projects in Argentina and the United States to production.

Shares of General Motors trade on the NYSE under the ticker symbol GM, and Lithium Americas also trades on the NYSE under the ticker symbol LAC.