Let’s spend more time with something we only grazed yesterday: GM’s $650 million equity investment in Lithium Americas Corp. to support development of the Thacker Pass mine in Nevada, Ben writes.
Driving the news: Lithium America’s share price jumped nearly 15% on the news of what the companies call the “largest-ever investment by an automaker to produce battery raw materials.”
Why it matters: Automakers are competing intensely to secure raw materials needed for EV expansion plans.
- In the U.S., they’re also looking to meet sourcing requirements for vehicles eligible for consumer tax subsidies.
What we’re watching: Auto giants are already working with mining companies to secure supplies, and we’ll also be watching for more equity investments.
- Simon Moores, CEO of Benchmark Mineral Intelligence, tells CNBC that automakers are realizing the need for ownership or controlling stakes in raw materials sources.
- “It’s the only way you’re going to have the edge and guarantee you can make EVs over the next 20 years,” the analyst said.