Compass Minerals picks lithium extraction technology to supply Ford, others

LG

14/09/2022 21:01

By Ernest Scheyder
    Sept 14 (Reuters) - Compass Minerals International Inc
 CMP.N  said on Wednesday it will use a lithium extraction
technology developed by EnergySource Minerals LLC to produce the
electric vehicle battery metal for Ford Motor Co  F.N  and
others.
    Washington has been pressing for U.S. companies to find
greener ways https://www.reuters.com/business/sustainable-business/new-lithium-technology-can-help-world-go-green-if-it-works-2022-04-07
 to boost domestic production of battery metals and lessen the
country's reliance on China.
    Compass chose EnergySource's direct lithium extraction (DLE)
technology over four rivals and plans to use it alongside
existing evaporation ponds to remove the battery metal from
Utah's Great Salt Lake https://www.reuters.com/article/compass-min-intl-stocks-idCNL4N2OQ313.
 
    Compass said it spent more than two years studying
EnergySource's technology and is confident it can begin
producing 10,000 tonnes of lithium annually by 2025.
    "This is the right technology for this resource," Compass
executive Ryan Bartlett told Reuters.
    Compass also on Wednesday said it would sell shares worth
$252 million to Koch Industries Inc and use proceeds to fund its
lithium project. Compass has lithium supply deals with Ford https://www.reuters.com/business/autos-transportation/ford-buy-cheaper-catl-ev-batteries-catch-tesla-2022-07-21
 and LG Energy https://www.reuters.com/business/autos-transportation/lg-energy-signs-battery-grade-lithium-supply-deal-with-compass-minerals-2022-06-29
 Solution Ltd  373220.KS . 
    The partnership is the first technology license by privately
held EnergySource, which counts oilfield giant Schlumberger NV
 SLB.N  and mining investment firm TechMet as investors.
EnergySource technology relies on an adsorbent that separates
lithium from impurities in brine. 
    EnergySource is developing its own DLE project in
California's Salton Sea, but warned in June that a recently
enacted state lithium tax https://www.reuters.com/business/autos-transportation/exclusive-california-lithium-tax-would-delay-shipments-automakers-executives-2022-06-29
 could force it to invest elsewhere.
    Eric Spomer, EnergySource's chief executive, said the
Compass partnership was not linked to the California tax, but
added: "There are a lot of brine resources in North America."
    Elsewhere, several DLE partnerships have recently soured.
Lake Resources NL  LKE.AX  plans to seek arbitration https://www.reuters.com/markets/asia/lake-resources-dispute-with-lilac-solutions-over-stake-argentina-lithium-project-2022-09-14
 to settle a dispute with Bill Gates-backed Lilac Solutions Inc.
    And officials in Bolivia, which holds the world's largest
lithium resource, parted ways https://www.reuters.com/markets/us/lithium-startup-energyx-gets-450-mln-investment-tied-ipo-plans-2022-07-22
 with EnergyX.

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Ford signs lithium supply deal with Compass Minerals   
 urn:newsml:reuters.com:*:nL1N2Z225M
LG Energy signs battery-grade lithium supply deal with Compass
Minerals     urn:newsml:reuters.com:*:nL4N2YG2KB
FOCUS-New lithium technology can help the world go green -- if
it works      urn:newsml:reuters.com:*:nL1N2UK302
FOCUS-Automakers funding new tech aimed at making greener
lithium for EVs      urn:newsml:reuters.com:*:nL1N2R214K
Compass Minerals jumps on finding 2.4 mln metric tons of lithium
resource      urn:newsml:reuters.com:*:nL4N2OQ313
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 (Reporting by Ernest Scheyder; Editing by David Gregorio)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))