Key Takeaways
(Bloomberg) -- Compass Minerals plans to re-enter the lithium market through a partnership with technology startup EnergyX, aiming to extract the battery metal from Utah's Great Salt Lake, a project estimated to hold more than 2.4 million metric tons of lithium. The move comes as rising prices and a national agenda to secure domestic supply chains intensify the race for U.S. lithium production.
"The HiTech lithium exploration project represents a significant step toward achieving the nation’s energy goals and reducing dependence on foreign critical minerals," said BLM Acting Malheur Field Manager Tara McClain, commenting on a separate, but similar, project in Oregon, highlighting the government's focus on domestic mineral production.
Under a memorandum of understanding, the General Motors-backed EnergyX will invest over $400 million and deploy its direct lithium extraction (DLE) technology to process the brine from the hypersaline lake. This partnership combines Compass Minerals' extensive resource holdings with EnergyX's innovative technology, aiming to establish a new, significant source of U.S. lithium. The Great Salt Lake resource is one of the largest known lithium brine deposits in the United States, comparable in scale to resources in the lithium-rich regions of South America.
The deal could significantly alter the U.S. lithium landscape, which is currently dominated by a single operational mine. A successful project at the Great Salt Lake would provide a major boost to the domestic battery supply chain, critical for the country's expanding electric vehicle and energy storage industries. The project's next major milestone is the finalization of the joint venture agreements.
The push for domestic lithium is not isolated to Utah. In a similar move, the Bureau of Land Management recently approved HiTech Minerals, Inc.'s plan for exploratory lithium drilling in the McDermitt Caldera in Southern Oregon. That project involves 168 drill sites across 7,200 acres of public lands.
However, these projects face scrutiny from environmental and indigenous groups. The McDermitt Caldera is home to the Fort McDermitt Paiute, Shoshone and Bannock Tribes, who have expressed concerns about the potential impact on cultural resources and the environment. "Sagebrush ecosystems take decades to recover in ideal conditions," said Anne White, policy manager for the Oregon Natural Desert Association, noting that drought and wildfires could make recovery nearly impossible.
This article is for informational purposes only and does not constitute investment advice.
