American automaker General Motors and Energy Exploration Technologies Inc. (“EnergyX”) proudly announced on April 11 that GM Ventures is leading EnergyX’s $50 million Series B funding round.
Apart from that, the two companies also formed a strategic partnership to accelerate the tech firm’s lithium extraction and refinery solutions for Gm.
“We are committed to securing EV critical minerals that are sustainable and cost competitive to maintain our leadership position among automakers. The investment in EnergyX is a further proof point of GM’s leadership position. 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. We are excited to be partnered with EnergyX on their efforts.”
Jeff Morrison, GM’s Global Purchasing and Supply Chain VP
About the Partnership
The press release noted that GM plans to invest in each North American battery supply chain stage, such as the following:
- raw materials
- processing
- cell components
- full battery cell manufacturing
Therefore, the partnership focuses on obtaining access to lithium supply in North America. They will apply EnergyX’s cutting-edge technique to boost sustainability while optimizing efficiency for GM’s fast-expanding EV production.
Remarkably, lithium metal may be produced directly from brine using EnergyX’s direct lithium extraction (DLE) technology. Additionally, lithium might also be produced in anode-ready form for EV batteries through this. In essence, this method makes it possible for lithium to be recovered more affordably and sustainably, opening up a vast supply chain in North America that might not have been feasible otherwise.
Below are the three main objectives of these two American companies:
- A development project for new technologies will aid in commercializing EnergyX’s cutting-edge DLE and refinery operations that may replace or supplement present evaporation pond technologies.
- An agreement permitting General Motors to exploit competitive lithium offtakes for its exclusive use in producing electric vehicles comprising raw materials sourced from mining firms EnergyX has contracted in North and South America.
- GM might be able to take advantage of new supply chain prospects due to EnergyX’s technology, which might support more strategic financing for projects involving lithium production in North and South America.
“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.
This single bottleneck (a massive lithium shortage) is the biggest challenge to scaling EV production. We will unlock lithium supply in the US, a pivotal move in expanding the EV industry. There are many ways of gauging success, but few are more rewarding than the support of leaders like GM. We’re energized by GM’s investment and will keep a ‘Day 1’ attitude as we pursue our goal of making EnergyX the biggest lithium company in the world.”
EnergyX CEO Teague Egan
Owing to this fresh round of funding from GM and other investors, EnergyX is now among the top companies in the world for DLE technology. In addition, it will enable the company to increase the scope of its solid-state lithium metal battery program (SoLiSTM) and its research and development into pure lithium metal anodes.
