By Michael Elkins
General Motors (NYSE:GM) announced Tuesday that the American automaker's venture capital arm will lead a $50 million financing round for EnergyX, a Texas-based startup developing a more efficient method to extract and process lithium from salt flats.
The global push by automakers to electrify their fleets has sparked a rush for stable supplies of lithium, copper, nickel, and other critical minerals. Demand is expected to exceed supply by the end of the decade, fueling interest in novel production methods.
EnergyX is one of several companies developing so-far unproven direct lithium extraction technologies (DLE) that could help GM filter the metal for its Ultium battery packs from some types of brine that have been largely ignored by the mining industry in favor of evaporation ponds and open-pit mines.
As part of the investment, GM's scientists will work to help EnergyX commercialize the DLE technology. GM told Reuters in an exclusive story that it believes DLE "could be the most efficient method to extract lithium from brine sources."
"We are committed to securing EV-critical minerals that are sustainable and cost competitive," said Jeff Morrison, GM's vice president of global purchasing and supply.
EnergyX's pilot plant, which opened last year, has demonstrated that its technology can recover 90% or more of the lithium in brine while using much less energy, water and land than existing processes.
EnergyX plans to use the new funding to build five larger demonstration plants in North America and South America.
"This GM investment will completely change the trajectory of EnergyX," said Teague Egan, the startup company's founder, and chief executive.
Shares of GM are down 0.46% in mid-day trading on Tuesday.