Car manufacturer General Motors said on Tuesday it will invest in lithium battery start-up EnergyX as it expands further into the mining industry.
This is the latest deal by the car maker to ensure long-term supplies of the metal for electric vehicle (EV) batteries.
Its investment unit GM Ventures is leading a $50 million Series B financing round in EnergyX, and has entered into a strategic agreement to develop EnergyX’s lithium extraction and refinery technology.
EnergyX’s direct lithium extraction (DLE) technology portfolio can make lithium metal directly from brine and potentially in anode-ready form for EV batteries, it said. This enables more cost-effective lithium recovery.
The collaboration between the two US companies includes:
- Technology development to commercialise EnergyX’s advanced DLE and refinery processes
- An agreement enabling GM to access competitive lithium offtakes for GM’s exclusive use in EV production. This includes material sourced from North and South American mining companies contracted by EnergyX
- Additional strategic financing for lithium production projects in North and South America, using EnergyX’s technology to drive potential supply chain opportunities for GM.
“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 of EnergyX.
Jeff Morrison, GM vice president of Global Purchasing and Supply Chain, said: “We are committed to securing EV critical minerals that are sustainable and cost competitive to maintain our leadership position among automakers.”
EnergyX said this new round of financing will also enable the company to broaden its research and development efforts for pure lithium metal anodes and its solid-state, lithium metal battery program, SoLiS.
It is building a 40,000-square-foot innovation and manufacturing facility in Austin, Texas. It has over 50 employees and will increase that number to 100 in the coming months, it said.
