EnergyX Expands U.S. Lithium Push With ‘Project Powder Hound’ in Utah
Energy Exploration Technologies Inc. (EnergyX), which in March commissioned a direct lithium extraction plant near Texarkana, Texas, said this week that it has signed a deal with Compass Minerals International Inc. of Overland Park, Kansas, to advance a commercial-scale lithium direct extraction and refining project in Ogden, near the Great Salt Lake in Utah.
In a news release, the company said the proposed two-phase facility, called Project Powder Hound, could produce up to 30,000 tons per year.
EnergyX said it expects to invest about $400 million, with projected annual revenue of more than $600 million at full build.
The companies said the Utah site holds about 2.4 million metric tons of lithium carbonate equivalent. Phase 1 targets up to 10,000 tpa and Phase 2 adds about 20,000 tpa more.
Per the agreement, Compass will provide land, infrastructure and brine access, while EnergyX will design, fund, build and operate the plant. The project is expected to create nearly 200 jobs.
“Our partnership with Compass Minerals demonstrates how strategic collaboration can accelerate the buildout of a secure, self-reliant U.S. critical minerals supply chain,” EnergyX CEO Teague Egan said.
Compass CEO Edward Dowling Jr. said the arrangement could “facilitate EnergyX’s development plans, support lake conservation efforts, and enable Compass Minerals to further strengthen our balance sheet.”
In the Smackover
EnergyX’s other big play is Project Lonestar, its lithium hub just west of Texarkana at TexAmericas Center in Bowie County, Texas, just across the border from Arkansas.
Lithium Link previously reported that EnergyX has an option to purchase about 330 acres there, is integrating newly acquired Smackover acreage into the project, and is targeting 12,500 tpa by 2028 and 50,000 tpa by 2030.
That could make Lonestar a potentially important regional processing hub for Arkansas brine resources, suppliers and workforce pipelines.
What to Watch
The Utah announcement shows EnergyX is trying to build a multi-basin U.S. platform, not just a single project. Reuters reports Egan plans to lobby the state’s lithium regulation and royalty rates, which Egan called “preposterously high.” EnergyX said definitive Utah agreements are expected in the coming months, pending due diligence and regulatory approvals.
More: Get more coverage of the announcement from Axios Pro, Reuters, Reuters via Investing.com, Mining.com, Design & Development Today and Geomechanics.
