Energy Exploration Technologies Inc (EnergyX), a lithium technology startup backed by General Motors, has acquired 35,000 acres of brine-rich land in southern Arkansas, strengthening its position in the Smackover formation, one of the most lithium-rich regions in the United States.
The deal, valued at A$40 million ($26.1 million), was struck with Australia-based Pantera Lithium and consists of A$6 million in cash and approximately 2.3 million shares of EnergyX stock priced at A$14.50 each. The acquisition brings EnergyX’s total holdings in the formation to roughly 47,500 acres.
The move marks another significant investment in domestic lithium supply despite persistently low market prices. It follows similar acreage purchases by major players such as Chevron, Exxon Mobil, Albemarle, and Standard Lithium , all aiming to tap into the Smackover’s potential.
Analysts estimate the formation could hold over 4 million metric tons of lithium, potentially enough to support the production of millions of electric vehicles and consumer electronics.
“The race is on to see who will be the first to produce commercial battery-grade lithium,” said EnergyX CEO Teague Egan, highlighting the competitive push to commercialize extraction in the region.
Pantera, which initially secured the acreage in 2023, will become a minority shareholder in EnergyX after the deal closes later this year. The company’s executive chairman described the agreement as a strategic fit between high-potential resources and advanced lithium extraction and refining technologies.
EnergyX plans to build a refinery in Texas to process lithium extracted from the Smackover and aims to produce 12,500 metric tons annually by 2028, ramping up to 50,000 metric tons by 2030.
The company, which has discussed the possibility of going public, will utilize direct lithium extraction (DLE) technology—an approach yet to be commercialized at scale. DLE is seen as a potentially faster and more efficient alternative to traditional evaporation methods.
GM, which led a $50 million funding round for EnergyX in 2023, holds first-refusal rights to purchase lithium from any EnergyX-developed project. EnergyX is also developing lithium assets in northern Chile and previously attempted to acquire lithium operations in Argentina.
To proceed with production, EnergyX will need to obtain royalty rates from Arkansas regulators, following recent approvals granted to Exxon and Standard Lithium for nearby projects.