EnergyX and the Global Lithium Boom

Almost every major player in the automobile industry is hopping on the shift to renewable energy. Toyota bZ4X, Cadillac LYRIQ, Honda Prologue, you name it – car manufacturers are now rolling out EV models, if not transitioning away from gas altogether. With the exception of fuel cell EVs (powered by hydrogen), the large majority of these vehicles are powered by batteries. These batteries, though, require a great deal of lithium to function. For perspective, each EV battery needs approximately 36 kg of lithium, which is about 18,000 times the amount needed in a smartphone. That’s a lot of lithium, especially given the fact that 2 billion EVs need to be on the road by 2050 for the world to hit net zero. 

Lithium-powered batteries aren’t just critical for cars; they’re used in just about everything, from computers, to AI, and even grid storage. So, as lithium demand soars by 1,500% between now and 2050, only one question comes to mind: who’s going to mine it?

Current technology certainly isn't enough. However, a startup by the name of EnergyX has recently developed technology that can extract 300% more lithium than conventional methods while also reducing processing times from 18 months to just a few weeks. In addition, it uses less water and is on-net better for the environment. With more than 75 patents across 19 different patent families, EnergyX’s LiTAS™ (Lithium Ion Transport and Separation) technology is attracting tens of millions in funding. Notably, The US Department of Energy gave the company a $5m grant and General Motors led the company’s $50m funding round. Evidently, General Motors, which has pledged to become carbon neutral in its operations and products by 2040, has recognized the value that Lithium – and companies like EnergyX – will continue to gain in the years to come. 

With this funding, EnergyX has revealed plans to build a lithium project, named Project Lonestar Lithium, in the Ark-La-Tex region of the United States. In its first phase, it is projected to produce 5,000tpa (tonnes per annum) of lithium, which is the current output of the largest existing lithium plant in the US. In phase 2, the plant will produce 25,000tpa. This announcement came after the launch of Project Black Giant, in which the company acquired 90,000 acres of lithium mining concessions in Chile. From CEO Teague Egan’s point of view, the project will reduce economic dependence on China, who currently processes 67% of global lithium.

For a limited time, EnergyX, which is preparing to go public, has decided to make their shares available to the public. Worth an investment?