American multinational automotive manufacturing company, General Motors is investing in lithium producer Energy Exploration Technologies Inc. as part of a new supply deal between the two companies.
The U.S. lithium company, known as EnergyX, will provide GM with exclusive lithium supply from its contracted mining companies in North America and South America, according to a press release. GM will also finance additional lithium production projects on the two continents.
The two companies will also collaborate to commercialize EnergyX’s direct lithium extraction technology, which the producer claims are more cost-effective and sustainable and will lead to a new lithium supply chain in North America.
GM’s investment was part of a $50 million funding round for EnergyX, though the automaker did not disclose the value of its funding to the startup.
EnergyX is currently building a 40,000-square-foot innovation and manufacturing facility in Austin, Texas, and has plans to grow its workforce to 100 people in the coming months, according to the release.
“We are committed to securing EV critical minerals that are sustainable and cost competitive to maintain our leadership position among automakers,” Jeff Morrison, GM vice president of global purchasing and supply chain, said in a statement.
With its new investment, GM is adding to its portfolio of lithium suppliers and widening its mine access. The EnergyX deal is the automaker’s second major lithium investment this year alone.