America has entered a new race for lithium. Compass Minerals and startup EnergyX now plan a massive lithium project at Utah’s Great Salt Lake. The deal could reshape the future of electric vehicle batteries across the United States.
Compass Minerals signed a partnership with EnergyX to restart lithium production efforts after earlier setbacks. EnergyX will invest more than $400 million into the project and use its direct lithium extraction technology to pull lithium from the salty lake water.
This news comes at a critical time for the global battery market. Lithium prices have jumped nearly 75% this year. Demand for electric vehicles also continues to rise fast across the world. Governments and automakers now scramble for reliable battery material supplies.
The Great Salt Lake may hold more than 2.4 million metric tons of lithium. That huge reserve has turned Utah into one of America’s most important future battery hubs.
Why Lithium Matters So Much
Lithium powers modern rechargeable batteries. Electric vehicles, smartphones, laptops, and energy storage systems all depend on the metal. Without lithium, the clean energy transition slows down dramatically.
Right now, China controls a large part of the global lithium supply chain. American leaders want to reduce that dependence. The US government now pushes hard for domestic mining and battery production.
President Donald Trump’s administration has strongly supported local mineral projects. Officials believe America must secure critical resources inside its own borders to protect economic and national security interests.
That political push has helped restart interest in lithium projects that companies once viewed as too risky or expensive.
Compass Minerals now sees another chance after earlier failure. The company stopped its original Utah lithium project in 2023 after state lawmakers approved tighter water access rules for the Great Salt Lake.
The shutdown caused serious financial damage. Compass later took a $75 million impairment charge and closed its lithium division in 2024.
Now the company hopes this new partnership can bring fresh success without the same financial risks.
EnergyX Takes Center Stage
EnergyX has become one of the most watched lithium startups in America. Founder and CEO Teague Egan launched the company in 2018 with a clear goal. He wanted faster and cleaner lithium extraction methods.
The startup focuses on direct lithium extraction, also called DLE. This technology works very differently from traditional mining methods.
Older lithium production methods often require huge evaporation ponds that consume large amounts of water and land. DLE systems instead filter lithium directly from salty underground brine.
EnergyX compares the process to household water filtration systems. The company says its method allows faster extraction with less environmental damage.
Egan also claims the company will protect the lake’s water levels. He said EnergyX will return the leftover brine back into the lake after lithium removal.
Environmental groups have closely watched the Great Salt Lake for years because water levels have dropped sharply. Many experts fear ecological collapse if water shortages continue.
That concern made earlier lithium projects politically difficult. EnergyX now hopes its extraction process can calm those fears.
The Utah Project Looks Massive
The companies plan to develop the project in two stages. The first phase should produce 10,000 tons of lithium every year. The second phase could raise annual output to around 20,000 additional tons.
When fully complete, EnergyX expects the project to generate nearly $600 million in annual revenue.
The project also benefits from a major cost advantage. Compass already extracts brine from the lake for fertilizer production. That existing infrastructure removes the need for expensive deep drilling operations.
EnergyX currently drills deep wells in Arkansas and Chile for lithium extraction. Utah’s setup allows cheaper access to high-lithium brine.
This advantage could help the project move faster than many competing lithium operations.
The companies expect final deal terms within the next few months. EnergyX aims to launch production by 2030.
Big Automakers Watch Closely
Major car companies already pay close attention to EnergyX. General Motors backed the startup in 2023 and secured first rights to purchase future lithium output.
That relationship shows how serious automakers have become about battery supply chains. Companies no longer want dependence on foreign suppliers alone.
Ford also earlier signed up as a customer during Compass Minerals’ first lithium attempt with another technology partner called EnergySource Minerals.
Electric vehicle companies now compete aggressively for long-term lithium contracts. Battery shortages could slow vehicle production and raise prices for consumers.
Analysts expect global lithium demand to continue strong growth for many years. EV adoption keeps rising across North America, Europe, and Asia. Energy storage systems for solar and wind power also need huge battery supplies.
That demand creates enormous pressure on lithium producers.
The Direct Lithium Extraction Race Heats Up
EnergyX does not stand alone in the DLE race. Several companies now compete to commercialize direct lithium extraction technology.
Exxon Mobil, Standard Lithium, and Lilac Solutions all pursue similar systems.
The race matters because DLE could completely transform lithium production economics. Traditional mining often takes years and huge environmental permits. DLE promises faster production with smaller land use.
Yet many experts still question whether large-scale DLE projects can work profitably over long periods. Several startups have promised breakthroughs before but failed during commercial expansion.
EnergyX now faces enormous pressure to prove its technology at industrial scale.
Success in Utah could place the startup among the world’s most important lithium technology firms.
Compass Minerals Finds a Lifeline
For Compass Minerals, this partnership may offer financial recovery after difficult years. The company struggled after its lithium shutdown and rising debt problems.
Reports in late 2024 suggested Compass even explored potential sale talks with private equity firms.
Now the company sees a different path. Under the new agreement, EnergyX will take most operational, regulatory, and financial responsibility for the project. Compass will provide lake access, equipment leases, and brine supply.
Compass CEO Edward Dowling Jr. said the partnership supports lake conservation efforts while also strengthening the company’s balance sheet.
Investors appear optimistic. Compass shares have more than doubled during the past 18 months after stronger fertilizer business results and debt reductions.
Utah Could Become America’s Battery Powerhouse
The Great Salt Lake project represents far more than one business deal. It reflects America’s larger push to control more of the global battery supply chain.
Lithium now sits at the center of economic competition, clean energy policy, and industrial strategy.
If EnergyX succeeds, Utah could become one of America’s most important lithium regions. The project could also prove that direct lithium extraction works at commercial scale.
That success would attract more investment, more battery factories, and more clean energy projects across the country.
For now, the entire industry watches closely. The next few years may decide whether EnergyX becomes a breakthrough success story or another failed lithium dream.
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