On January 31, 2023, General Motors announced that it has entered into a purchase agreement with Lithium Americas in respect of a US$650 million equity investment in Lithium Americas to develop the Thacker Pass mine. The transaction represents the largest investment by an automaker in the production of battery raw materials and will result in General Motors becoming Lithium Americas' largest shareholder.
Under the terms of the purchase agreement, General Motors will make an aggregate equity investment of US$650 million in Lithium Americas comprised of two tranches: (1) the first tranche in the amount of US$320 million of subscription receipts which upon conversion will allow General Motors to acquire approximately 15 million common shares at a price of US$21.34, which represents a 9.999 percent ownership interest in Lithium Americas before the separation of its US and Argentina businesses; and (2) the second tranche in the amount of US$330 million which the parties expect will be invested into Lithium America’s US business following the separation. The equity investment supports the development of the Thacker Pass project, which is the largest known deposit of lithium in the United States and is estimated to contain enough raw materials to power one million electric vehicles each year. The funding of the first tranche is currently in escrow and contingent on conditions in the transaction terms of the agreement.
General Motors is the largest automaker in the United States and the company designs, builds and sells automobile parts and accessories globally.
Lithium Americas is a TSX and NYSE dual-listed company focused on the development of advanced stage lithium projects in the United States and Argentina.
Osler, Hoskin & Harcourt LLP advised General Motors Co. with a team consisting of Alan Hutchison, Shahir Guindi, Patrick Sullivan, Bhavish Beejan (Corporate), Mark Brender, Alain Fournier, Jean-Philippe Dionne, Taylor Cao (Tax), Shuli Rodal (Competition & Antitrust) and Judith Njokuji (Osler Works).