Posco Holdings to Invest in Lithum Tech Company EnergyX

Posco Holdings, a South Korean conglomerate, is leading a consortium that is investing in lithium technology company EnergyX as it investigates more effective ways to create the battery metal for the green energy transition. The global rush to electrify the economy has fueled a search for a dependable lithium supply and other important minerals, drawing attention to as-yet unproven direct lithium extraction (DLE) technology developed by EnergyX and its colleagues.

If successful, DLE technology might generate battery metal faster and cheaper than traditional evaporation ponds from brine reserves worldwide, notably in northern Argentina, where Posco is constructing the Sal de Oro lithium project. South Korea's Elohim Partners and IMM Investment Global will invest in EnergyX's $50 million Series B funding round as part of the deal. The companies said that Posco, which invests through those funds, will work with EnergyX to help its technology reach commercial production.

"In a world where lithium is critical, we expect EnergyX to thrive in the lithium extraction market," stated Elohim CEO Jaeho Rhee.

The firms declined to reveal how much of the EnergyX Series B is being funded by the partnership. Conversely, Posco will have the right to invest in further lithium projects developed by EnergyX in proportion to the extent of its investment in the privately held firm.

According to Reuters, General Motors is leading the EnergyX Series B. EnergyX is constructing a DLE demonstration facility near Posco's Sal de Oro project in Argentina's Salta Province. Posco will test EnergyX's technology before deciding whether to license it, according to the firms.