Energy Exploration Technologies Inc. and General Motors Co. on Tuesday said the automaker's investment arm GM Ventures is leading a $50 million Series B financing round for the lithium startup.
The companies also said they entered into a strategic agreement to develop EnergyX's lithium extraction and refinery technology. The collaboration between GM and EnergyX "is focused on unlocking the North American supply of lithium, a critical material for EV batteries by using EnergyX's innovative process to maximize efficiency while improving sustainability for GM's rapidly scaling EV production," the companies said in a release.
EnergyX says its direct lithium extraction technology can make lithium metal directly from brine and potentially in anode-ready form for electric vehicle batteries. Their process would make for a more cost-effective and sustainable way to recover lithium.
The collaboration between the companies includes three key components:
— A program to support commercialization of EnergyX's advanced DLE and refinery processes
— An agreement enabling GM to access 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, using EnergyX's technology to give GM potential supply chain opportunities
"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, in a statement. "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."
In 2022, EnergyX became the first firm to design, build and commission an in-field pilot plant in the Lithium Triangle in South America, which holds more than 65% of the known global lithium reserves. The company's LiTA technology is said to increase lithium recovery rates to more than 90% from the current industry standard of 30-40%.
After a five-month pilot program, EnergyX will scale the systems to market demonstration plants at five regional test beds in North and South America before moving to full-scale commercialization.
The new round of financing, funded by GM and other investors, will help EnergyX to expand its research and development for pure lithium metal anodes and its solid-state, lithium metal battery program, SoLiS.
EnergyX is building a 40,000-square-foot manufacturing facility in Austin, Texas. The company has more than 50 employees and plans to increase that number to 100 in coming months.
