GM inks lithium sourcing and investment deal with Controlled Thermal

General Motors reached a strategic investment and commercial collaboration deal July 2 with Controlled Thermal Resources that will allow the automaker to source US-produced lithium for its electric vehicle batteries.

"Lithium is critical to battery production today and will only become more important as consumer adoption of EVs increases and we accelerate towards our all-electric future," Doug Parks, GM's executive vice president of global product development, purchasing and supply chain, said in a statement.

"By securing and localizing the lithium supply chain in the US, we're helping ensure our ability to make powerful, affordable, high mileage EVs while also helping to mitigate environmental impact and bring more low-cost lithium to the market as a whole."

This lithium will be produced through CTR's closed-loop, direct extraction from geothermal brine at its Hell's Kitchen project in California, which is expected to come online in 2024 with its first stage of production. GM's investment will aid forthcoming development to the operation.

The deal grants GM first rights to lithium produced by the first stage of the Hell's Kitchen project, including an option for a multi-year relationship.

"The relationship between GM and CTR is expected to accelerate the adoption of lithium extraction methods that cause less impact to the environment," according to GM's statement. "A significant amount of GM's future battery-grade lithium hydroxide and carbonate could come from CTR's Hell's Kitchen lithium and power development."

CTR's extraction process will utilize renewable power and steam to separate lithium from brine and yield battery-grade products in less than an hour with a near-zero carbon footprint. The brine will then be returned to the geothermal reservoir at the project site.

"Worldwide growth in electric vehicle adoption has highlighted the critical need to develop a strong and secure battery supply chain in the US," CTR CEO Rod Colwell said in a separate statement. "CTR is fully committed to developing its significant lithium resource in response to this, and we look forward to collaborating with GM as we continue to accelerate these efforts."

The first stage of the Hell's Kitchen project is expected to produce 20,000 mt/year of lithium hydroxide and has a total estimated resource capacity of 300,000 mt/year on a lithium carbonate equivalent basis, according to CTR's website.