General Motors announced Tuesday it is investing $50 million in EnergyX, a Texas-based lithium tech startup that has developed a more effective way to extract and refine lithium from salt flats.
The move furthers GM’s investments in every phase of the North American battery supply chain, from raw materials through processing, to cell components, to full battery cell production.
“This single bottleneck (a massive lithium shortage) is the biggest challenge to scaling EV production. We will unlock lithium supply in the U.S., a pivotal move in expanding the EV industry,” said Teague Egan, CEO, EnergyX. “We’re energized by GM’s investment and will keep a ‘Day 1’ attitude as we pursue our goal of making EnergyX the biggest lithium company in the world.”
Why EnergyX matters
In 2022, EnergyX became the first firm to design, build and commission an in-field pilot plant in the Lithium Triangle, which holds more than 65% of the world’s proven lithium reserves and, according to the U.S. Geological Survey, produce about half of its global supply.
EnergyX’s direct lithium extraction (DLE) technology extracts lithium metal directly from brine in anode-ready form for GM’s Ultium EV batteries. In essence, brine deposits are salt-infused water found worldwide.
DLE technology more efficiently separates the lithium and leaves calcium, and other minerals.
EnergyX’s techniques been largely ignored by the mining industry that uses a far less-efficient method of pumping water underground to flush out the mineral, then allowing the resulting brine to evaporate in ponds and open-pit mines. But this technique leads to a 30-40% recovery rate as opposed to EnergyX’s approach which increases lithium recovery rates to as much as 94%.
What comes next
Once the company completes a successful five-month pilot program, EnergyX plans to increase its production. EnergyX already employs more than 50 people and plans to raise that number to 100 in the upcoming months. EnergyX is currently building a 40,000 square foot research and production facility in Austin, Texas to accommodate its expanding operation.
Unlocking a lithium supply in North America is a top priority for GM. But it’s not economically feasible utilizing current extraction techniques. The automaker is naking on EnergyX’s technology to lower costs while limiting environmental impact, which would make North American lithium mining profitable.
“We are committed to securing EV critical minerals that are sustainable and cost competitive to maintain our leadership position among automakers,” said Jeff Morrison, GM vice president of Global Purchasing and Supply Chain.
“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.”
Founded in 2018, EnergyX, also known as Energy Exploration Technologies, has filed more than 60 patents covering its technology. The company plans to launch an IPO by 2024.