The announcement of a US$50 million investment by General Motors in lithium technology-focused company EnergyX has been making headlines in Chile and Argentina in recent days. The reason? The company wants to deploy its direct lithium extraction (DEL) technology in the salt flats of South America. The DEL technology has shown higher efficiency in lithium recovery than the traditional evaporation method and, in addition, it uses less water.

EnergyX has its research center in Austin, Texas, and is incorporated in San Juan, Puerto Rico. It has a presence in Bolivia, Chile and Argentina.

The company participated in the tender called by the Bolivian government for the extraction of lithium with LED technology in the Uyuni, Coipasa and Pastos Grandes salt flats, and built a pilot plant in the country. However, it was disqualified from the bidding process in mid 2022 due to a technicality.

Beyond Bolivia, EnergyX has set its sights on Chile and Argentina. In the latter country, it has an agreement with Australia's Orocobre to develop tests and eventually build a pilot plant in the Salar de Olaroz, which has been in production since 2015. In Chile, EnergyX is interested in partnering with producers operating in the country to test and eventually implement its technology.

What does the agreement with General Motors consist of? According to EnergyX, it has three main points:

• Support a technology development program to support the commercialization of EnergyX's advanced refinery and DLE processes, which could complement or replace traditional evaporation pond methods.
• An agreement that allows GM to access competitive lithium extractions for exclusive use in electric vehicle production, including material sourced from North and South American mining companies contracted by EnergyX.
• Additional strategic funding for lithium production projects in North and South America, using EnergyX technology to drive potential supply chain opportunities for GM.