On Tuesday, General Motors announced its plans to invest in EnergyX, a lithium technology startup, as part of its continued expansion into the mining industry. The move is the latest in a series of strategic deals made by the car manufacturer to secure long-term supplies of the metal required for electric vehicle batteries. The worldwide race by automakers to electrify their fleets has triggered a surge in the demand for stable supplies of lithium, copper, nickel, and other critical minerals. Experts predict that the demand for these minerals will surpass their supply by the end of the decade, creating a need for innovative and sustainable production methods.
GM’s investment in EnergyX signifies the automaker’s proactive approach to tackling the impending shortage of lithium by investing in emerging technologies. EnergyX’s unique approach to lithium extraction promises to revolutionize the production process, making it more efficient and environmentally friendly. By expanding its reach into the mining industry, GM is taking steps to secure its position in the electric vehicle market and ensure that it can meet the rising demand for sustainable transportation. The automaker’s investment in EnergyX is just one of many steps it is taking to mitigate the risks posed by the looming mineral shortage and to secure its long-term success in the electric vehicle market.
Lithium extraction
EnergyX, a privately-held technology company, is among a handful of companies developing innovative direct lithium extraction technologies. These technologies have the potential to extract lithium from certain types of brine, which have been overlooked by the mining industry in favor of evaporation ponds and open-pit mines. Brine deposits are water sources with high concentrations of salt, and many of them contain lithium, calcium, and other minerals. DLE technologies aim to extract lithium from these brine sources, leaving behind the rest of the minerals.
Through its investment in EnergyX, General Motors will collaborate with the company’s scientists to commercialize DLE technology. GM aims to be successful where rivals, such as Rio Tinto Ltd and BMW-backed Lilac Solutions Inc, have so far failed. GM has expressed confidence that DLE technology could be the most efficient method to extract lithium from brine sources. The development of DLE technology could provide a breakthrough in the production of lithium for electric vehicle batteries. Traditional mining methods require significant investments in infrastructure and can have a negative impact on the environment. DLE technologies offer a more sustainable and efficient approach to lithium extraction.
GM’s investment in EnergyX demonstrates the automaker’s commitment to addressing the supply chain challenges facing the electric vehicle industry. By collaborating with EnergyX to commercialize DLE technology, GM is taking a proactive approach to secure its supply of lithium and ensure its position in the growing electric vehicle market.
Securing critical minerals
The funding will be used to finance EnergyX’s future expansion across North and South America. Reuters was the first to report on GM’s investment earlier on Tuesday. GM has not disclosed how much of the Series B round it will be funding. However, as part of the investment, the automaker will have the right of first refusal to purchase lithium from any projects that EnergyX develops.
Jeff Morrison, GM’s vice president of global purchasing and supply, stated that the automaker is committed to securing sustainable and cost-effective EV-critical minerals. EnergyX, also known as Energy Exploration Technologies Inc, has announced its plans to launch an initial public offering by 2024. Private equity firm Global Emerging Markets Group has indicated its intention to invest $450 million in EnergyX once shares begin trading as part of the IPO.
GM’s investment in EnergyX reflects the automaker’s proactive approach to securing the supply of critical minerals required for the production of electric vehicle batteries. By taking a leading role in the financing of EnergyX’s expansion, GM is positioning itself to benefit from the innovative DLE technology developed by EnergyX, while also ensuring the long-term sustainability of its electric vehicle production.
