Army Picks EnergyX for Conditional Lease at Red River Army Depot
The U.S. Army announced that it has conditionally awarded Energy Exploration Technologies Inc. (EnergyX) a long-term lease to develop a lithium processing facility on about 100 acres at Red River Army Depot in Bowie County, Texas. The project is part of a broader federal push to expand domestic critical mineral production for national defense.
The deal would tie EnergyX’s Project Lonestar more directly to U.S. defense and manufacturing supply chains, using underused military property while keeping the land in Army ownership.
Under the Army’s Enhanced Use Lease program, EnergyX would finance, build, operate and eventually decommission the facility at its own expense.
The Army would receive compensation through infrastructure upgrades or other in-kind benefits rather than taxpayer funding.
EnergyX is among four companies the Army is working with to design, finance, build and operate critical mineral processing facilities on its installations. EnergyX is the only company awarded for lithium.
“Processing lithium on American soil, at a U.S. Army installation no less, is exactly the kind of bold step this country needs to secure its energy and defense supply chains,” said Teague Egan, EnergyX’s founder and CEO. “We’re humbled that the Army chose EnergyX to make it happen.”
Lithium Link has been tracking EnergyX’s regional buildout, including its planned TexAmericas Center “mega-refinery,” its nearly 50,000-acre Smackover position across Arkansas and Texas, and Project Lonestar targets of 12,500 tons annually by 2028 and 50,000 tons by 2030.
The move also fits a theme Lithium Link has previously highlighted: That defense demand could help catalyze domestic battery supply chains by giving early credibility to projects before broader commercial markets scale.
What’s Next
Lease negotiations are ongoing. If finalized, construction could begin in 2027, with initial operations expected in 2028.
