General Motors is investing in finding a better way to extract the raw material lithium — a critical element used in electric vehicle batteries — from North America as it ramps up EV production.
GM Ventures is leading a $50 million second round of financing for Energy Exploration Technologies Inc. (EnergyX). GM has also entered into an agreement to develop EnergyX’s lithium extraction and refinery technology, GM said Tuesday.
The collaboration looks to extract the North American supply of lithium by using EnergyX’s direct lithium extraction or DLE. As part of the partnership, GM will also have first right of refusal to buy lithium from any of the projects developed by EnergyX.
EnergyX’s DLE technology can make lithium metal directly from brine and potentially in anode-ready form for EV batteries. It is a cost-effective and a sustainable way “to unlock a vast lithium supply chain in North America that may otherwise be unviable,” the companies wrote in a statement.
“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,” said Teague Egan, CEO, EnergyX. “This single bottleneck (a massive lithium shortage) is the biggest challenge to scaling EV production.”
GM plans to bring seven new EVs to market in the next 18 months and targets 2035 to be all-electric. This GM investment is one in a series of investments GM is making to secure the raw materials, the processing of those materials and full battery cell production to secure its EV future. For example, GM said last fall it would invest $69 million in Queensland Pacific Metals of Australia to secure a supply of nickel and cobalt, also critical to making EV batteries.
GM, in its joint venture with LG Energy Solution called Ultium Cells LLC, is also spending nearly $7 billion to build three new battery factories in the United States, one of which will be in Lansing.
More:GM invests in nickel and cobalt operation in Australia
More:GM has 3 new deals with suppliers to assure it hits EV production target
“We are committed to securing EV critical minerals that are sustainable and cost competitive to maintain our leadership position among automakers,” Jeff Morrison, GM vice president of Global Purchasing and Supply Chain, said in a statement.
DLE is not only cost-competitive but it will reduce energy, land and water usage compared with the current extraction and processing process for brine-based lithium, Morrison said.
EnergyX, which was founded in 2018 and based in Fort Lauderdale, Florida, is building a 40,000-square-foot innovation and manufacturing facility in Austin, Texas. It currently has about 50 employees and will double that number in the coming months.
Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.