- General Motors Company GM is leading a $50 million Series B financing round in Energy Exploration Technologies Inc (EnergyX), a lithium technology startup.
- The parties also entered a strategic agreement to develop EnergyX's lithium extraction and refinery technology.
- The move is viewed as an attempt by the carmaker to secure the supply of lithium, a critical material for EV batteries.
- EnergyX is developing direct lithium technologies (DLE) to extract lithium from the brine deposits, enabling more cost-effective and sustainable lithium recovery.
- GM will help EnergyX commercialize the DLE technology and refinery processes, which could complement or replace traditional methods of evaporation ponds.
- GM will access competitive lithium offtakes for its exclusive use in EV production, including material sourced from North and South American mining companies contracted by EnergyX.
- Also Read: GM Buyouts Slash 5,000 Positions
- "We are committed to securing EV-critical minerals that are sustainable and cost competitive to maintain our leadership position among automakers," said Jeff Morrison, GM vice president of Global Purchasing and Supply Chain.
- Amid building a 40,000-square-foot facility in Austin, Texas, to house its growing operation, EnergyX plans to increase its employees to 100 in the coming months. EnergyX currently counts over 50 employees.
- Also See: GM Vs Tesla: How Do Q1 EV Sales Stack Up?
- Price Action: GM shares are trading lower by 0.57% at $35.53 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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