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As electric vehicle (EV) demand surges, securing sustainable sources of critical materials like lithium has become a global priority. At the heart of this “white gold rush” is EnergyX—a U.S.-based startup leveraging direct lithium extraction (DLE) to drastically improve the efficiency, cost, and environmental footprint of lithium production. In a detailed walkthrough with Sandy Munro, EnergyX CEO Teague Egan revealed how their proprietary platform achieves over 90% lithium recovery from brine sources, reshaping the future of battery-grade lithium supply.
The Problem with Conventional Lithium Extraction
Currently, most of the world’s lithium comes from salt brines found in South America’s “Lithium Triangle,” where traditional production relies on massive evaporation ponds. These facilities can span over 50 square miles and take up to 18 months to yield lithium through slow natural evaporation. Even then, recovery rates average just 30–40%. And the process consumes vast amounts of water—a critical concern in arid regions.
EnergyX tackles these limitations head-on with a platform that eliminates evaporation ponds entirely. Instead, their modular refinery uses advanced material science and chemical engineering to extract lithium mechanically and selectively, offering much higher yields and a fraction of the environmental impact.
Understanding Direct Lithium Extraction (DLE)
Direct lithium extraction refers to the process of pulling lithium ions from salt-rich brines using chemical and mechanical techniques—without relying on sun-based evaporation. According to Teague Egan, the key to EnergyX’s success lies in building a DLE “platform” rather than betting on a single technology. This allows them to tailor their process to different brine chemistries sourced from around the world.
The EnergyX system includes four core technologies:
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Adsorption
Lithium is first captured using custom-designed resins. As brine passes through absorption columns, lithium selectively binds to the resin. A small amount of water then flushes the lithium off the resin, creating a purified solution with minimal impurities. This step alone offers over 90% recovery. -
Solvent Extraction
The lithium-rich solution undergoes a separation stage using proprietary reagents. This “mixer-settler” unit purifies and concentrates the lithium by transferring it from the aqueous phase into an organic phase. As Egan notes, this stage can raise lithium concentrations from just hundreds of parts per million to over 20,000—critical for battery applications. -
Membrane Conversion via Electrodialysis
To turn lithium chloride into battery-grade lithium hydroxide, EnergyX employs custom membranes and an electric potential to selectively transport lithium ions. Unlike energy-intensive reverse osmosis, electrodialysis uses electrodes to pull lithium ions across membranes, optimizing energy use and throughput. -
Crystallization
Because the lithium stream exiting the membrane unit is already highly purified, EnergyX only needs a single crystallization step to produce usable lithium hydroxide—streamlining cost and complexity compared to conventional methods.
Why This Matters for EV Manufacturers
High lithium prices and inconsistent supply threaten to slow EV adoption. EnergyX’s approach reduces cost per ton while minimizing land use, water loss, and permitting challenges. This is especially significant in environmentally sensitive areas like the western U.S.
Sandy Munro, a long-time advocate for lean design and manufacturing, noted that EnergyX’s model aligns perfectly with those principles. “You’re looking at something that’s maybe 10 times better than anything I’ve heard so far… not to mention it’s clean.”
This cleaner process is also faster to deploy. Instead of waiting years to build and operate evaporation ponds, EnergyX’s modular system can scale from lab bench to commercial plant in a fraction of the time. Not only does that make it attractive to automakers, but also to governments and green energy investors.
Building the Team and Scaling Fast
Unlike many deep-tech founders, Teague Egan doesn’t come from an engineering background. His strength, as he candidly shares, is assembling world-class teams. With over 75 employees—more than half of them PhD scientists and engineers—EnergyX has built a vertically integrated company that designs its own resins, reagents, and membranes in-house.
Manufacturing of larger-scale systems is handled by third-party OEMs following EnergyX’s proprietary specs, enabling faster scaling without overextending internal resources.
The company’s innovation extends to financing as well. Egan personally funded the startup’s first $1 million. Following that, he led each investment round, and secured participation from major strategic partners like General Motors and Posco. He also embraced retail crowdfunding, allowing over 5,000 individual investors to join alongside institutions—democratizing access to a high-growth cleantech opportunity.
Pilot to Commercial: The Path to Scale
From a modest lab in Austin, Texas, EnergyX has advanced its tech through rigorous testing at pilot scale. Their current systems process one cubic meter of brine per day. Demonstration plants being built in Chile, Argentina, and the U.S. will ramp that up to one cubic meter per hour—about 24 cubic meters per day—enabling final validation ahead of full-scale commercial deployment.
Critically, EnergyX’s system is flexible. Whether processing brine from South American salt flats or near-surface deposits in North America, the company can tune its platform to handle variable compositions. This adaptability is a competitive advantage in a world where lithium sources are diverse and not standardized.
Environmental Edge and Economic Impact
What makes EnergyX truly disruptive isn’t just the tech—it’s the environmental footprint. Their method avoids draining millions of tons of water into open-air ponds, preserving freshwater for local agriculture and communities. Brine, minus lithium, is re-injected into the ground, preventing subsidence or ecological collapse.
In terms of yield, the system can recover up to one kilogram of lithium per cubic meter of brine. This is an extraordinarily high number. Traditional mining methods don’t come close, especially given lithium’s low weight and diffuse distribution in hard rock sources.
For policymakers and EV manufacturers under pressure to localize supply chains and decarbonize battery materials, EnergyX offers a compelling blueprint for the future.
Looking Ahead: Vertical Integration and Market Expansion
While EnergyX initially planned to license its technology, its confidence in the platform’s performance has prompted a strategic shift. The company is now exploring direct resource acquisition—owning lithium-producing land and becoming a fully integrated lithium supplier. This would let EnergyX both license tech and sell lithium, maximizing revenue and strategic flexibility.
As the battery arms race intensifies globally, EnergyX’s blend of innovation, agility, and environmental stewardship positions it as a crucial player in the next phase of EV growth.
Conclusion: The New Frontier of Lithium
EnergyX is reshaping the economics and environmental calculus of lithium extraction. With its direct lithium extraction platform achieving 90%+ recovery, minimal water waste, and reduced land impact, the company offers a glimpse of what lean, scalable, and sustainable battery material supply can look like.
For automakers, battery manufacturers, and clean energy investors, now is the time to watch. It’s also a time to potentially partner with EnergyX as it moves from demonstration to full commercial production.
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