General Motors Company (NYSE:GM) announced it is investing in lithium technology startup Energy Exploration Technologies (EnergyX) in support of its strategy to invest in every stage of the battery supply chain in North America as demand for electric vehicles (EVs) ramps up.
The two companies said in a statement that GM Ventures is leading a $50 million Series B financing round in EnergyX and has entered into a strategic agreement to develop EnergyX’s lithium extraction and refinery technology.
GM did not disclose how much of the Series B round it was funding.
Austin, Texas-based EnergyX has a portfolio of direct lithium extraction (DLE) technology which can make lithium metal directly from brine and potentially in anode-ready form for EV batteries. The two companies said this approach enables more cost-effective and sustainable lithium recovery to unlock a vast lithium supply chain in North America that may otherwise be unviable.
The collaboration has three key components: a technology development program to support the commercialization of EnergyX’s advanced DLE and refinery processes; an agreement enabling 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; and additional strategic financing for lithium production projects in North and South America, using EnergyX’s technology to drive potential supply chain opportunities for GM.
“We are committed to securing EV critical minerals that are sustainable and cost-competitive to maintain our leadership position among automakers,” commented 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.”
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie