A consortium led by South Korean conglomerate Posco Holdings is investing in lithium technology startup EnergyX as it considers more efficient ways to produce the battery metal for the green energy transition.
The push to electrify the world’s economy has fueled a hunt for stable supplies of lithium and other critical minerals and drawn attention to so-far unproven direct lithium extraction (DLE) technologies being developed by EnergyX and its peers.
DLE technologies could, if successful, produce the battery metal faster and cheaper than traditional evaporation ponds from brine deposits found throughout the globe, including in northern Argentina where Posco is developing the Sal de Oro lithium project.
As part of the deal, South Korea’s Elohim Partners and IMM Investment Global will invest in EnergyX’s $50 million Series B funding round. Posco, which invests through those funds, will work with EnergyX to help its technology reach commercial production, the companies said.
“In a world where lithium is of the utmost importance, we expect EnergyX to thrive in the lithium extraction market,” said Jaeho Rhee, Elohim’s CEO.
The companies declined to say how much of the EnergyX Series B that the consortium is funding.
Posco, though, will have the right to invest in other lithium projects that EnergyX develops, proportional to the size of its investment in the privately-held startup.
Reuters reported in April that the EnergyX Series B is being led by General Motors.
EnergyX is building a DLE demonstration plant in Argentina’s Salta Province, near Posco’s Sal de Oro project. Posco will test EnergyX’s technology as it deliberates whether to license it, the companies said.
“We’re viewing Posco as our flagship customer for Argentina,” said Teague Egan, EnergyX’s CEO. “We hope this evolves into a full-blown commercial agreement.”
Posco said last year that it would invest USD 4 bn in Argentina and that it aims to produce 100,000 metric tons of the metal there by 2026, an amount that would likely make it South America’s largest producer. Allkem, Livent and others produce lithium nearby.
Posco operates a small test facility at the site that can produce up to 2,500 metric tons of lithium per year.
Along with Chile and Bolivia, Argentina is part of South America’s “lithium triangle,” a region that contains some of the world’s largest deposits of the battery metal.
Posco, which runs the Ultium CAM cathode joint venture with GM, said in August that it was targeting $32.57 billion in sales of battery materials by 2030.
In addition to working with Posco, EnergyX is looking for Argentine brine deposits to purchase, Egan said, though he declined to be more specific.
EnergyX, which has also built a DLE demonstration plant in Chile, was disqualified last year from a competition in Bolivia to produce lithium that was eventually won by a group led by China’s CATL.
