General Motors Company (NYSE: GM) comes with a market capitalization of $85.53 billion. The American multinational corporation has its headquarters in Detroit, Michigan. The company recently surprised all when it announced a U.S. lithium project worth millions. The move is said to push other automakers in similar directions.
Gaining traction with U.S. lithium project
While the auto industry is still reeling under the effects of the pandemic and is coming out from the red zone gradually, GM has surprised the lithium industry by announcing a U.S. lithium project that is pitched as potentially the largest one by 2024. This makes GM the first automaker that would have its indigenous source for battery metal necessary for the electrification of trucks and cars.
The deal that was announced on Friday has sent shockwaves amongst the automakers and lithium industry alike. This is so because the industries struggle to get access to lithium and other metals for electric vehicles. The internal combustion engines have remained phased out as of now. Meanwhile, GM has announced this multimillion-dollar investment to develop Controlled Thermal Resources Ltd’s Kitchen geothermal brine project.
The company has not yet disclosed the intricate details of the investment. While there have been other automakers like BYD, and Great Wall Motor Co, who have had invested in lithium projects earlier, but GM’s deal is the most aggressive step in the process of production.
It is also expected that the demand for lithium will shoot up more than the supply by 20% in the next four years, as there is a rising world slant towards cleaner energy solutions. The announcement has come two weeks after the company just increased its budget for electric and autonomous vehicles by 75%. The budget is now $35 billion.