On Friday, Lithium Americas revealed that General Motors (GM) has delayed the second part of its $650 million investment in the lithium mining company until the end of the year.
This delay affects the $330 million tranche meant to support the development of the Thacker Pass lithium project in Nevada. This project is significant as it can supply enough lithium to build 1 million electric vehicles annually.
GM’s delay is tied to the condition of finalizing a $2.26 billion loan with the US Energy Department by the end of the year. This loan’s completion is uncertain due to potential changes in US policy, especially with the upcoming presidential election, which might impact energy and mining regulations.
In other news, gold prices softened on Friday after recent US inflation data met expectations. Spot gold was down 0.6% to $2,506.59 per ounce, while futures fell 0.9% to $2,538.30.
Despite this dip, gold prices have risen 3% this month, following an all-time high earlier. Analysts anticipate that the Federal Reserve may cut interest rates in September, which could influence gold’s movement further.
Gold demand remains mixed, with discounts in India widening and weak physical demand in China. Traders are closely watching for changes in unemployment data next week, which could impact future Federal Reserve decisions and gold prices.
