*

EnergyX expands Smackover holdings to 47,500 acres amid

low

lithium prices

*

EnergyX plans lithium refinery in Texas, aims for 30,000

metric

tons annual production by 2030

*

GM has first refusal rights on EnergyX lithium projects

July 9 (Reuters) - EnergyX, the lithium technology

startup backed by General Motors ( GM ), has bought 35,000 acres

in the Smackover formation from Pantera Lithium ( PTMLF ), the

latest deal for access to the U.S. brine formation teeming with

supplies of the battery metal.

The deal boosts the holdings of privately held EnergyX to

roughly 47,500 acres in the Smackover, an underground geological

formation stretching from Florida to Texas filled with

lithium-rich brine. It also underscores the growing interest in

boosting U.S. production of the metal despite low market prices.

Chevron ( CVX ) in recent weeks has bought Smackover acreage,

joining Exxon Mobil ( XOM ), Albemarle, Standard Lithium ( SLI )

and others with holdings in the region.

Analysts estimate the Smackover could contain more than 4

million metric tons of lithium, enough to make millions of

electric vehicles and other electronic devices.

EnergyX's A$40 million ($26.1 million) agreement to buy the

acreage in southern Arkansas from Australia-based Pantera

includes A$6 million in cash as well as roughly 2.3 million

shares in EnergyX that the companies are valuing at A$14.50

($9.47) each.

EnergyX, which is controlled by CEO Teague Egan, has discussed a

public listing in the past. Pantera, which itself had first

agreed to buy the acreage in 2023, will be a minority

shareholder in EnergyX after the deal closes, expected later

this year.

EnergyX is also building a lithium refinery in nearby Texas

that will process lithium from the Smackover brine. The company

aims to be producing 12,500 metric tons of lithium per year by

2028 and 30,000 metric tons per year by 2030.

GM, which led a $50 million financing round for the company in

2023, has the right of first refusal to buy lithium from any

project that EnergyX develops.

All of the companies aiming to extract lithium from the

Smackover will need to use direct lithium extraction (DLE),

something that has never been done before at commercial

scale.

EnergyX will also have to apply for a lithium royalty rate

from Arkansas officials, who in recent weeks have approved rates

for nearby lithium projects from Exxon and Standard

Lithium ( SLI ).

EnergyX tried unsuccessfully last year to buy Galan Lithium's ( GLNLF )

assets in Argentina. A consortium led by South Korean

conglomerate Posco Holdings ( PKX ) is an EnergyX investor.

EnergyX is also developing a lithium project in northern Chile.

($1 = 1.5328 Australian dollars)