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EnergyX, a developer of lithium extraction plants, signed an agreement with minerals producer Compass Minerals to potentially develop a $400 million Utah production hub and refinery to supply the battery mineral.

Why it matters: EnergyX is preparing to raise project-level equity and debt to fund the site, plus another $300 million-$500 million in Series C funding, CEO Teague Egan tells Axios Pro exclusively.

Catch up quick: EnergyX is among a handful of companies working to commercialize direct lithium extraction, or DLE, which aims to make the production process more efficient.

The effort has faced challenges from the battery mineral's boom-bust price swings and shifting EV demand.

Yes, but: "Lithium is back, baby," Egan tells Axios Pro.

Benchmark prices this month soared to $28,528 per metric ton, a 245% leap from $8,259 last year.

The latest: EnergyX last week signed a memorandum of understanding to fund, build and operate a 30,000 tons-per-annum DLE facility on land owned by Compass Minerals (NYSE: CMP) in Ogden, Utah, near the Great Salt Lake.

EnergyX would initially extract 10,000 tons per annum of lithium at ponds that Compass Minerals is using to produce other resources.

A second phase would seek to develop another 20,000 from upstream brine concentration ponds.

Follow the money: EnergyX will fund the Utah site, known as Project Powder Hound, with project-level equity and debt.

The company also plans to begin raising a $300 million-$500 million Series C this summer, Egan says.

EnergyX has raised $181 million in equity funding, including $75 million through crowdfunding site DealMaker in 2024 and $50 million in Series B funding the previous year.

Investors include GM Ventures, IMM Investment and Elohim Partners.

State of play: The Utah plant would be EnergyX's second U.S. site and its third globally.

The company commissioned a $35 million demonstration plant in Texas, called Project Lone Star, producing 250 tons per annum of lithium hydroxide for batteries, Egan says.

It's also invested $60 million in a small pilot site, the company's first, in Chile.

What's next: EnergyX plans to open its first commercial plant in Chile.

Exclusive: EnergyX aims to raise ahead of U.S. lithium plant project

It's also preparing a $300 million-$500 million Series C.

Industrial lab with a large black cylindrical tank bearing a white logo; overhead sign reads "ION EXCHANGE." Two workers in high-visibility vests and hard hats walk among pipes and tanks.

Workers at an EnergyX demonstration plant in Texas. Photo: Courtesy of EnergyX

EnergyX, a developer of lithium extraction plants, signed an agreement with minerals producer Compass Minerals to potentially develop a $400 million Utah production hub and refinery to supply the battery mineral.Why it matters: EnergyX is preparing to raise project-level equity and debt to fund the site, plus another $300 million-$500 million in Series C funding, CEO Teague Egan tells Axios Pro exclusively.

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Exclusive: EnergyX aims to raise ahead of U.S. lithium plant project

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