GM investing $50 million in EnergyX to unlock US-based lithium supplies for EV batteries

GM Ventures is financially backing EnergyX and helping the company develop its lithium extraction and refinery technology as part of a collaboration focused on unlocking North American lithium supplies for use in electric vehicle batteries, the General Motors subsidiary said April 11.

GM Ventures is leading a $50 million Series B financing round in EnergyX, whose direct lithium extraction technology can make lithium metal directly from brine and potentially in anode-ready form for EV batteries, according to a statement.

The technology can enable more "cost-effective and sustainable lithium recovery" to unlock a lithium supply chain in North America that "may otherwise be unviable," the companies said in the statement.

"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," Teague Egan, EnergyX's CEO, said.

The US recorded a strong start to 2023 passenger electric vehicle sales, with PEVs making up 7.8% of total light-duty vehicle sales, according to a March research note from S&P Global Commodity Insights.

The US Department of Transportation has started the first-round applications for $2.5 billion in grants to deploy EV infrastructure beyond the major interstates and highways, to plug gaps in the charging network as more EVs hit the road, S&P Global said.

Lithium Carbonate CIF North Asia prices have also come down from recent highs near $80,000/mt to just below $60,000/mt, according to the research note.

Increasing lithium supply

"We are committed to securing EV critical minerals that are sustainable and cost competitive to maintain our leadership position among automakers," Jeff Morrison, GM's vice president of global purchasing and supply chain, said in the statement.

"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," Morrison said.

EnergyX's lithium refinery process increases lithium recovery rates to over 90% from the current industry standard of 30-40% and hit 94% during field trials, according to the statement.

After a successful five-month pilot program proving the efficacy of the lithium refinery process, EnergyX plans to scale those systems to more "robust market demonstration plants" located at five regional test beds in North and South America, followed by full-scale commercialization, the company said.

This new round of financing, funded by GM and other investors, will help the company broaden its research and development efforts for pure lithium metal anodes and its solid-state lithium metal battery program, the statement said.

GM is investing in all stages of the North American battery supply chain, from raw materials, to processing, to cell components and full battery cell production, the company said.

The collaboration between GM and EnergyX includes the following three key components:

• A technology development program to help commercialize EnergyX's advanced DLE and refinery processes, which could complement or replace traditional methods of evaporation ponds
• An agreement permitting GM to access competitive lithium offtakes for GM's exclusive use in EV production, including material sourced from North and South American mining companies contracted by EnergyX
• Additional financing for North and South American lithium production projects using EnergyX's technology to drive potential supply chain opportunities for GM