The Inflation Reduction Act calls for 80% of EV battery minerals to be domestically sourced by 2026. The rush to secure domestic supply is being witnessed right now. One American legacy automotive OEM is forming the correct partnerships to ensure it reaches that 80% threshold. As of today, the company that is investing in American mining and minerals processing is General Motors. The two mining companies discussed in this article are leaders respectfully in their space and will create the most American EVs on the market... by 2026.
General Motors has recently made major investments in both lithium and rare earth mining company. With both investments totaling over $1.3B, GM is set to build a more American-sourced EV. Let's explore where the rare earth and lithium originate from before making their way into GM's Ultium Battery Platform. (NYSE: GM)
SOURCE: MEI CAI ULTIUM PRESENTATION
MP Materials (NYSE: MP)
SOURCE: MP MATERIALS TWITTER
Mountain Pass, California is a forgotten town just north of the Mojave National Preserve and three hours southwest of Las Vegas, NV. It also just happens to be the largest rare earth mining site in the western hemisphere. Not very visible from I-15, the major highway that traverses the pass, MP Materal's mine accounts for roughly 25% of the world's Neodynium, an element used in industrial-grade magnets. With a 200,000-square-foot plant expected to begin production in 2023, in Fort Worth, Texas, MP Materials is creating a leaner supply chain within the US.
General Motors will use the neodymium magnets from MP Materials and use them in the Ultium battery pack. The ultium battery will allow for any design to sit above it. This includes the Hummer EV (I've driven one!), the Cadalac Lyriq, and all the way to the vehicle I particularly like, the Chevy Blazer EV. (2024 Model Pictured Below)
SOURCE: AUTOMOTIVE NEWS
Lithium Americas (NYSE: LAC)
Thacker Pass, Nevada has just received all the necessary approvals to being construction. Located near the Idaho border, near the northern Nevada city of Winnemucca, is the largest known resource of lithium in the United States. It is either the second or third largest reserve in the world, depending on whom you ask. With construction already started in March 2023 commencing, the expected production is estimated around 2025/2026.
SOURCE: LITHIUMAMERICAS.COM
GM recently announced their $650 investment for phase one lithium from Thacker Pass. With specific clauses in their agreements that support growth from Lithium Americas, GM will also benefit from the scalability and opportunity at Thacker Pass. GM has 100% rights to phase 1 of Lithium America's product. A processing facility will be built adjacent to the mine.
Letter from Editor
I have my eye on the Chevy Blazer and as an investor in both MP Materials and Lithium Americas, it would only be logical that I purchase an EV that is more American-made. I will be expecting my Mountain Pass and Thacker Pass-powered EV in 2026. With requirements of up to 80% of EV battery minerals must be extracted and processed in the United States by 2026, GM will become a leader in this space. GM, Make it Happen!
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