Compass Minerals is preparing to re-engage in the lithium sector through a planned partnership with EnergyX, a technology company backed by General Motors. The two firms have signed a memorandum of understanding that outlines a potential investment by EnergyX of more than $400 million to apply its direct lithium extraction - or DLE - process to brines from Utah's Great Salt Lake.
The memorandum, as described by the parties, is not yet final. If completed, the agreement would enable EnergyX to use its DLE technology to filter lithium from the hypersaline waters of the Great Salt Lake, which the companies estimate contain in excess of 2.4 million metric tons of lithium.
The announcement arrives at a time when prices for lithium have been rising and there is a broader policy and industry push to increase domestic U.S. production of the metal used in batteries. Compass Minerals' contemplated return to the market is positioned against that backdrop of strengthening prices and supply-side interest in securing more U.S.-based sources of the critical battery input.
The proposed arrangement centers on the deployment of EnergyX's DLE technology at the Great Salt Lake. Under the terms of the memorandum of understanding, EnergyX would provide the capital for that deployment, subject to the memorandum being finalized and any subsequent agreements that may be required to move the project forward.
The companies have emphasized the potential scale of the resource available in the Great Salt Lake, and the proposed investment would represent a substantial private capital commitment to apply DLE methods to a large domestic brine resource. Beyond the potential capital infusion, the deal highlights ongoing commercial interest in technologies designed to accelerate extraction timelines and increase recovery from saline sources.
Details beyond the broad investment figure, the technology to be used, and the estimated resource size were not specified in the memorandum as described. The plan remains dependent on completing the formal agreements envisioned by the memorandum of understanding.
Summary of the deal:
- Compass Minerals and EnergyX have signed a memorandum of understanding to pursue lithium extraction at Utah's Great Salt Lake.
- EnergyX, backed by General Motors, would invest more than $400 million if the memorandum is finalized.
- The target resource is an estimated more than 2.4 million metric tons of lithium in the lake's hypersaline brines.