- General Motors has invested in the start-up EnergyX
- In order to secure the supply of lithium
- Lithium is used to make batteries for electric vehicles
General Motors announced on Tuesday, 11 April 2023, an investment in lithium technology start-up EnergyX specialising in lithium technology to further expand its mining business. The information was published by the specialised website www.zonebourse.com.
“This is the latest move by the automotive giant to secure the long-term supply of the metal used to make batteries for electric vehicles,” says www.zonebourse.com.
The general drive by car manufacturers to electrify their fleets has sparked a race for stable supplies of lithium, copper, nickel and other essential minerals. Demand is expected to outstrip supply by the end of the decade, prompting interest in new production methods.
Privately owned EnergyX is one of several companies developing unproven direct lithium extraction (DLE) technologies that could help General Motors filter metal for its batteries from certain types of brine that have been largely ignored by the mining industry in favour of evaporation ponds and open pit mines.
The automaker plans to lead a $50 million Series B financing round for EnergyX and help fund future EnergyX expansions in North and South America. General Motors, which declined to specify the amount of the Series B financing, will have the first right to purchase of lithium from any project developed by EnergyX.
In the words of Jeff Morrison, General Motors’ Vice President of Global Purchasing and Procurement, “We are committed to securing sustainable and cost-competitive EV-critical minerals”.
Extracting lithium metal from brine without refining
The company EnergyX has confirmed that its technology can produce lithium metal directly from brine, which is an exciting prospect for General Motors and could avoid the need for lithium refining, widely seen as a bottleneck in the supply chain.
As a reminder, brine deposits are essentially salt water found around the world. Many are full of lithium, calcium and other minerals, and some technologies aim to separate the lithium and leave the rest.
The EnergyX investment comes after General Motors agreed in January to pay $650 million to become the largest shareholder in Lithium Americas Corp, which is developing the Thacker Pass lithium clay project in Nevada.
In 2021, the carmaker also invested in privately held Controlled Thermal Resources Ltd CTR, which is attempting to use DLE technology to develop a geothermal brine project in southern California. General Motors’ investment is an important vote of confidence in favor of EnergyX, which found itself trapped the year when Bolivian authorities, home to the world’s largest lithium resources, disqualified the startup from a DLE technology selection process. “This investment from General Motors will completely change the trajectory of EnergyX,” said Teague Egan, founder and managing director of the young company.
Summary by Rachid Ouedraogo
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