Lithium Americas (NYSE:LAC) announced on Friday that General Motors (NYSE:GM) has postponed the second tranche of its $330 million investment in the company until the end of the year.
This delay concerns a significant investment aimed at advancing the Thacker Pass lithium mining project in Nevada, which could supply enough lithium to power 1 million electric vehicles annually.
GM's initial commitment, made last year, involved a total investment of $650 million in two phases to support the development of Thacker Pass.
The lithium miner revealed that it is now considering alternative structures for the investment, with the deal's closure date extended to December 20.
Should the deal not be finalized by then, Lithium Americas will be required to grant additional rights to GM.
A crucial condition for the second tranche of investment is the successful execution of a $2.26 billion loan agreement with the U.S. Energy Department.
However, the ongoing uncertainty surrounding the upcoming U.S. presidential election has put pressure on companies like Lithium Americas to expedite their loan agreements.
Former President Donald Trump has promised to end the electric vehicle mandate, and his administration’s Project 2025 document outlines plans to close the Loans Program Office, which could jeopardize such agreements.
GM has not yet responded to requests for comment on the situation.