The announcement of a US$50 million investment by General Motors in EnergyX, a company focused on lithium technology, has been making headlines in Chile and Argentina in recent days. The reason? The company wants to implement its direct lithium extraction (DEL) technology in the salt flats of South America. DEL technology has proven to be more efficient at recovering lithium than the traditional evaporation method and also uses less water.

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

The company participated in the bidding process organized by the Bolivian government for lithium extraction using DEL 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 Argentina, it has an agreement with the Australian company Orocobre to conduct tests and eventually build a pilot plant at 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 entail? According to EnergyX, it has three main points:

• Support a technology development program to facilitate 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 competitively priced lithium for its exclusive use in the production of electric vehicles, including material sourced from mining companies in North and South America contracted by EnergyX.
• Additional strategic financing for lithium production projects in North and South America, using EnergyX's technology to drive potential opportunities in GM's supply chain.