General Motors (NYSE: GM) is investing USD$50 million in Energy Exploration Technologies (EnergyX) and has entered into a strategic agreement to develop EnergyX’s lithium extraction and refinery technology.
Announced on Tuesday, the collaboration aims to unlock North America’s lithium supply, which is a critical material for electric vehicle (EV) batteries, by using EnergyX’s direct lithium extraction (DLE) process to improve efficiency and sustainability for GM’s rapidly scaling EV production.
“The EnergyX team of scientists and engineers have worked relentlessly for five years developing cutting-edge DLE technology to solve the immense bottlenecks that have limited global lithium production and supply chain,” said Teague Egan, CEO, EnergyX.
One large bottleneck is the biggest challenge to scaling EV production, according to Egan. This technology proposes to unlock lithium supply in the United States.
EnergyX’s DLE technology can make lithium metal directly from brine, potentially in anode-ready form for EV batteries, which enables more cost-effective and sustainable lithium recovery, unlocking a vast lithium supply chain in North America that may otherwise not be viable.
There are many ways of gauging success, but few are more rewarding than the support of leaders like @GM. We’re energized by GM’s investment in @energyx and look forward to collaboration.
Let's gooo! ⚡️🤝https://t.co/uc5iVzeP4f#EnergyX #GM #lithium #ElectricVehicles #startup pic.twitter.com/2s3TfyVcgQ
— Teague Egan ⚡ (@TeagueEgan) April 11, 2023
Read more: FE Battery Metals drill results show high grade lithium intercepts at August Lithium in Quebec
Read more: Nevada Sunrise Metals receives geochemical analysis for lithium at Gemini Lithium Project
General Motors will get access to lithium offtakes for EV production
The collaboration between the two American companies also includes a technology development program to support commercialization of EnergyX’s advanced DLE and refinery processes. General Motors will have access to competitive lithium offtakes for its exclusive use in EV production, including material sourced from North and South American mining companies contracted by EnergyX.
Additional strategic financing for lithium production projects in North and South America using EnergyX’s technology to drive potential supply chain opportunities for GM is also part of the collaboration.
EnergyX became the first firm to design, build and commission an in-field pilot plant in the Lithium Triangle, which encompasses over 65 per cent of the known global lithium reserves, in 2022. The company’s LiTAS technology increases lithium recovery rates to over 90 per cent from the current industry standard of 30-40 per cent using ponds and hit 94 per cent during field trials.
“The investment in EnergyX is a further proof point of GM’s leadership position. EnergyX is developing a novel direct lithium extraction process that’s not only cost competitive but also will reduce energy, land and water usage as compared to the current extraction and processing process for brine-based lithium,” said Jeff Morrison, GM vice president of global purchasing and supply chain.
After a successful five-month pilot program, EnergyX will scale its systems to more robust market demonstration plants located at five regional test beds in North and South America, followed by full-scale commercialization.
This new round of financing helps EnergyX broaden its research and development efforts for pure lithium metal anodes and its solid-state lithium metal battery program, SoLiS. EnergyX is building a 40,000-square-foot innovation and manufacturing facility in Austin, Texas, to house its growing operation, and currently employs over 50 people, increasing to 100 in the coming months.
GM stock dipped $0.32 to close at $35.41 on the New York Stock Exchange.
Follow Joseph Morton on Twitter
joseph@mugglehead.com
