General Motors to invest in lithium technology start-up EnergyX
Technology
General Motors to invest in lithium technology start-up EnergyX
DETROIT (Reuters) - General Motors Co on Tuesday said it will invest in lithium technology start-up EnergyX as it expands further into the mining industry, the latest deal by the car maker to ensure long-term supplies of the metal used to make electric vehicle batteries.
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.
Privately-held 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 favour of evaporation ponds and open-pit mines.
Brine deposits are essentially salt-infused waters found throughout the globe. Many teem with lithium, calcium and other minerals, and DLE technologies aim to separate out the lithium and leave the rest.
As part of the investment, GM's scientists will work to help EnergyX commercialize the DLE technology, trying to succeed where it, rivals Rio Tinto Ltd, BMW backed Lilac Solutions Inc. and others have so far failed. GM told Reuters it believes DLE "could be the most efficient method to extract lithium from brine sources."
The automaker plans to lead a Series B round of financing for EnergyX worth $50 million and to help finance EnergyX's future expansion across North and South America. Reuters first reported GM's investment earlier on Tuesday.
GM, which declined to say how much of the Series B round it was funding, will have the right of first refusal to buy lithium from any projects that EnergyX develops.
EnergyX, also known as Energy Exploration Technologies Inc. has said it aims to launch an initial public offering by 2024. As part of any IPO, private equity firm Global Emerging Markets Group plans to invest $450 million in EnergyX once shares begin trading.
