GM faces vote over Indigenous risks at Thacker Pass

A group of faith-based investors is pressing General Motors (NYSE: GM) shareholders to back a proposal calling for greater disclosure of Indigenous rights risks tied to critical mineral sourcing, putting the automaker’s investment in Lithium Americas’ (TSX, NYSE: LAC) Thacker Pass lithium project under renewed scrutiny.

The proposal, open for vote at GM’s annual meeting Tuesday, asks the company to publish a report detailing how it identifies, assesses and addresses Indigenous rights risks linked to transition mineral supply chains. The filing specifically cites Thacker Pass in Nevada, known to some Indigenous groups as Peehee Mu’huh, where GM committed $625 million in 2024 to a joint venture with Lithium Americas that includes a 20-year exclusive lithium supply agreement for EV batteries.

“GM faces ongoing controversies, including through its investment in the Thacker Pass lithium project, which demonstrates the materiality of these risks,” proponents said in materials supporting the resolution.

The shareholder proposal, filed by the New Jersey-based Sisters of St. Joseph of Peace, argues GM has not adequately explained how it evaluates Indigenous rights risks despite public commitments to respect those rights and require similar standards from suppliers.

Consent dispute

Opposition to Thacker Pass highlights potential legal, operational and reputational risks for investors when mining projects advance without broad Indigenous support, the group says. Representatives of the People of Red Mountain, a committee of traditional knowledge keepers and descendants of the McDermitt Paiute, Shoshone and Bannock Tribes, presented the proposal on the Sisters’ behalf.

The concerns centre on whether free, prior and informed consent was obtained before the mine was approved. The Sisters argue GM “knew or should have known” consent concerns existed when it invested in the project.

A Human Rights Watch and American Civil Liberties Union report last year found federal consultation with Tribes was limited and occurred over less than a year, compared with an average permitting timeline of more than three years for new mines. An Amnesty International report released last month also said the project is proceeding without tribal consent and that GM had not demonstrated it assessed whether such consent had been obtained. The report further alleged construction activity and fencing have restricted Indigenous access to parts of ancestral lands.

“As investors concerned about the material impact on shareholder value, we believe companies have a responsibility to deliberately identify and meaningfully address those risks,” Sister Susan Francois, treasurer of the Sisters of St. Joseph of Peace, said in a statement. “As people of faith, we also believe a business strategy should never come at the expense of human rights, dignity, or self-determination.”

Mining pressure

The vote reflects growing investor focus on social licence issues across the mining sector as demand for lithium, nickel and copper accelerates.

Indigenous rights disputes, environmental opposition and water-use concerns have emerged as major permitting and financing risks for projects considered essential to the energy transition. The resolution also points to reports alleging GM may be sourcing nickel from Indonesian operations linked to Indigenous rights violations, deforestation and marine pollution.