America’s Largest Lithium Deposit at Thacker Pass at Center of US-China Rivalry

Lithium Americas is a Canadian #lithium mine developer and operates several mines in both North and South America. In particular, it owns the Thacker Pass mine, which is one of the largest lithium deposits in North America.

In 2023, the company split into Lithium Americas and Lithium Americas Argentina, which kept North American and South American assets, respectively. As per the US Inflation Reduction Act (IRA), Ganfeng was pushed out of North America and ring-fenced to South American assets.

In 2017, Ganfeng Lithium injected USD 174 million into Lithium Americas in return for a 20% stake. At the same time, it signed an offtake agreement, thus making Ganfeng a major shareholder and large customer.

Similarly, Ganfeng gradually increased its stake to 51% in Minera Exar to become the controlling shareholder. Minera Exar is a JV between Ganfeng and Lithium Americas Argentina. The JV owns one of the largest and low-cost lithium brine projects in the world at Cauchari-Olaroz in Argentina.

However, the Thacker Pass mine has recently become the focus of the rivalry between China and the USA. The US Government intervened to recalibrate the project to be more domestic-oriented by introducing another major shareholder, namely, General Motors.

In January 2023, GM announced an investment of USD 650 billion into Lithium Americas. Then, GM disbursed the first tranche of USD 320 million right in February 2023. Then, in 2025, GM increased its commitment to a cumulative total of nearly USD one billion. Thus, GM now holds a 38% in the Thacker Pass mine.

Therefore, the Argentina mine is still more China-oriented, while the US project has now become US-aligned. Lithium is one of the #CriticalMinerals that has come under the spotlight and is sometimes referred to as ‘White Gold.’