EnergyX, a lithium extraction startup with backing from General Motors, has announced a major acquisition of lithium-rich acreage in the Smackover Formation, spanning northeast Texas and southwest Arkansas. This strategic move is a core component of the company’s Project Lonestar and positions EnergyX to become a key player in the domestic lithium supply chain. The acquisition aligns with broader U.S. efforts to reduce dependency on foreign lithium sources, particularly as demand for electric vehicles continues to surge.
The Smackover Formation is considered one of the most promising lithium brine reserves in the United States due to its high-grade chemistry and potential for scalable, environmentally conscious extraction. EnergyX plans to use its proprietary LiTAS direct lithium extraction technology, which has demonstrated efficiency gains and lower water consumption compared to traditional evaporation pond methods. This DLE technology aims to achieve over 90% lithium recovery, a substantial improvement over existing processes that typically yield between 30% and 50%.
The company's ambition to establish a vertically integrated supply chain is also receiving a boost from General Motors, which recently led a $50 million Series B funding round. The investment is part of GM’s broader strategy to secure reliable, domestic sources of critical materials for its next-generation EV batteries. The lithium sourced from Project Lonestar is expected to support GM's target of producing over one million EVs annually in North America by 2035.
Beyond the commercial benefits, the acquisition holds national significance. Lithium is designated as a critical mineral due to its essential role in energy storage technologies. By developing domestic production, the U.S. aims to reduce its exposure to global supply disruptions, particularly from dominant players like China. The Department of Energy has also provided research and infrastructure support to accelerate development in this region.
Despite its promise, the project faces challenges. Environmental regulations, local permitting, and logistical hurdles could delay development timelines. Additionally, EnergyX must scale its technology to a commercial level, a milestone few DLE firms have achieved. Nonetheless, the combination of advanced technology, strategic backing, and strong demand signals places the company in a favorable position.
The acquisition represents a proactive step toward achieving lithium independence. While environmental and technical hurdles remain, the involvement of major partners and the use of next-generation technology increase the chances of long-term success. If executed well, this initiative could play a key role in transforming the domestic energy supply chain while aligning with sustainability and economic security goals.