Lithium Jackpot as General Motors Bets Big on World’s Largest Deposit

Shareholders of a company operating what could be the world’s largest lithium deposit received an early Christmas gift this week. General Motors (GM), which had previously partnered on the project, officially closed its joint venture with the company, marking a significant milestone that further aligns the two firms’ futures.

The lithium mine, a strategically critical investment, is expected to produce enough lithium to power 800,000 American-made electric vehicles (EVs) annually. This project has already secured a $2.6 billion loan from the federal government. Now, GM has invested $625 million into the site, securing a 38% stake in the project. Importantly, GM’s investment is limited to the project itself and not the company behind it, ensuring the mine reaches production and directly ties GM’s battery supply to its success.

What’s noteworthy is the stark contrast between the project’s valuation and the company’s current market capitalization. The company’s total market cap, calculated from its outstanding shares and stock price, hovers just above $625 million—matching GM’s 38% stake. This implies a total valuation of $1.65 billion for the lithium project, as determined by GM’s investment.

When production begins, the mine is expected to yield 40,000 tons of lithium annually in its initial phases, sufficient to supply roughly half of the current U.S. domestic EV market. With a reported 120 million tons of lithium within the deposit—more than all the world’s known lithium resources combined—the potential value of this deposit stretches into trillions of dollars, even at today’s subdued lithium prices.

While it will take years for the mine to reach full-scale production, the site itself has a history stretching back millions of years. Formed from the remnants of the Yellowstone supervolcano, the unique caldera is exceptionally rich in metals. If fully developed, it has the potential to reshape the global energy and electronic metals markets, which are currently dominated by China.

This project began gaining momentum during the final days of Donald Trump’s presidency when an executive order was signed to initiate work on the site. While overshadowed by the political events of January 6th, the initiative continued to accelerate, culminating in this year’s $2.6 billion federal investment.

GM’s involvement underscores the strategic importance of the mine, which could become one of the most critical resources for the U.S. energy sector, ensuring a steady domestic supply of lithium to support the EV revolution.

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