EnergyX has developed a unique extraction and refining process that it says can produce high-quality lithium at a lower cost than traditional methods. The company is hoping to use the funding from GM to help it scale up its operations and volume production.
Since GM announced the acquisition of the automaker, Tesla Motors has been on high alert. The electric car maker has been vocal about its concerns that GM’s acquisition could stifle innovation and competition in the automotive industry. However, Tesla’s reaction seems to have backfired, as GM announced a new deal with EnergyX that would help increase lithium-extraction efficiency. This exchange further illustrates how automakers are constantly seeking ways to improve their respective technologies in order to stay ahead of their competition.
This exclusivity deal, though limited, is significant because it gives GM the ability to better compete with Tesla and its innovative electric car models. Tesla has become a dominant player in the electric car industry due to its popular models and lack of exclusive deals with automakers. With this funding, GM can continue to build electric cars and strive for success in an ever-growing market.
EnergyX is revolutionizing the lithium industry by developing a less environmentally destructive extraction method. Their tech can extract lithium from brine resources using little to no water, and does not require heavy metals or chemical additives. This advancement could herald a future in which we are able to more easily access this essential mineral, driving down costs and making batteries more affordable for electric vehicles and renewable energy generation alike.
Some people in Austin, Texas, and San Juan, Puerto Rico believe that Energy X has been stealing their ideas. The startup bears no relation to a similarly named, Seoul-based company called Energy X, which focuses on decarbonizing buildings. Some people think the Austin-based company is using their name to steal business away from Energy X.
GM’s investment in a lithium mining company may seem risky, but the automaker is hoping that it will be able to create a new source of fuel for its cars. Lithium is a key component in batteries, and its supply has been tight in recent years as miners focus on more lucrative sources of the mineral.