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2026 IPO planned for American Critical Resources

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New company aims to sell lithium, geothermal power

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Public listing aimed at attracting US government

investment

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Company must still commercialize DLE technology

By Ernest Scheyder

Nov 4 (Reuters) - A California lithium company plans to

launch an initial public offering next year as part of a bid to

become an attractive investment target for the U.S. federal

government.

Controlled Thermal Resources (CTR), which has been privately

held for more than a decade, aims by next July to spin off its

minerals assets and part of its geothermal power generation

business into a publicly traded firm to be called American

Critical Resources.

The company, which must first commercialize so-far unproven

direct lithium extraction technology (DLE) to produce the

electric vehicle battery metal for Stellantis ( STLA ) and

General Motors ( GM ), is deciding between Intercontinental

Exchange's ( ICE ) NYSE or Nasdaq for the listing, said

CEO Rod Colwell.

US GOVERNMENT TARGETS PUBLICLY TRADED MINERALS PROJECTS

The IPO plans come amidst Washington's growing wave of

investments into publicly traded minerals projects, including

rare earths producer MP Materials ( MP ) and Lithium Americas ( LAC )

, part of President Donald Trump's goal off lessening

the country's reliance on market leader China.

"Would the federal government do what they've done with MP

Materials ( MP ) if it was private?" said Colwell. "There seems to be a

pattern that's been formed in Washington for a desire to work

with public companies versus private companies and have a path

to liquidity."

When asked if the IPO was aimed at trying to secure U.S.

government funds, Colwell said: "Absolutely."

Colwell, who will become the CEO of American Critical

Resources, controls the majority of CTR's private shares along

with family members. He declined to provide a valuation estimate

for the new company, adding that conversations are in early

stages.

FIRMS STRUGGLE TO COMMERCIALIZE DIRECT LITHIUM EXTRACTION

The company - like its peers - has struggled for years to

commercialize direct lithium extraction technology (DLE), a

process backers say is more sustainable than open-pit mines and

evaporation ponds, the two most common methods to produce

lithium.

It missed a self-imposed deadline to supply GM by 2024.

The project, based at the Salton Sea, roughly 160 miles (258

km) southeast of Los Angeles, which is slated to produce lithium

starting in 2028, was added to a fast-track permitting list by

the Trump administration.

In addition to lithium, the new company aims by 2029 to

produce zinc, manganese and potash from brine extracted from

deep reservoirs, which teems with myriad critical minerals.

Australian advisory firm Hall Chadwick and investment bank

Cohen & Co are advising on the IPO process.

The Salton Sea project faced a lawsuit from environmental

group Earthworks due to concerns about water use. A state court

ruled earlier this year against the environmental group, which

is appealing.

This latest California lithium push comes amid increasing

competition to be the first in the U.S. to deploy DLE. Arkansas,

for example, is vying to beat California to that mark.