LAC:CC - GM to make $650M equity investment in Lithium Americas

Lithium Americas ( NYSE: LAC ) +10.1% pre-market Tuesday after announcing with General Motors ( NYSE: GM ) they will jointly invest to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the U.S.

GM ( GM ) will make a $650M equity investment in Lithium Americas ( LAC ), which the companies say represents the largest-ever investment by an automaker to produce battery raw materials.

Lithium Americas ( LAC ) has estimated the lithium extracted and processed from the project can support production of as many as 1M electric vehicles per year.

GM ( GM ) said it will use the lithium carbonate from Thacker Pass in its proprietary Ultium battery cells.

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," Lithium Americas ( LAC ) President and CEO Jonathan Evans said.

Separately, GM ( GM ) issued better than expected Q4 adjusted earnings and revenues .

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