EnergyX’s Ambitious Lithium Project in Chile Aims to Revolutionize the Industry
Chile,a global leader in lithium production,is witnessing a groundbreaking initiative by the American startup EnergyX,led by founder adn CEO Teague Egan. The company’s flagship project, Black Giant, is set to transform the lithium landscape with its innovative approach and ambitious goals.
Located near Salar Punta Negra, south of the renowned Salar de Atacama, the project spans 44,000 hectares. But EnergyX’s vision doesn’t stop there. The company also holds 2,000 hectares in Mejillones, were it plans to build what could become the largest lithium refinery plant in the world.
During his 25th visit to Chile, Egan met with Minister of Economy nicolás Grau and representatives of investchile to advocate for the project. His primary focus? Securing a CEOL (Special Lithium Operation Contract) to begin exploitation.
“It is hard for me to understand that a first-world democracy like Chile ignores our project, with our experience, technology, and financial support,” Egan stated. He emphasized that the project meets all government demands, boasting experience, technology, financial backing, and 100% mining ownership.Despite its potential, Punta Negra has not been included in the 12 salars and deposits prioritized by the Chilean government. Egan remains confident, stating, “It’s hard for me to believe that there are othre better projects than ours.”
Juan Carlos Barrera, EnergyX’s president of Lithium for South America and former senior vice president of lithium and potassium operations at SQM, shares this optimism.“I’ve been in the mining industry for 35 years, in more than 30 projects, visiting 121 countries, and this is the most challenging challenge of my whole life,” he saeid. “We will not stop until we get it, as it is indeed a great chance for Chile, but also for the world.”
One of Black giant’s unique features is its extraction method. Unlike traditional operations, it sources lithium from brine outside the salt flats.The project, currently in the exploration phase, employs a camp with 200 workers and utilizes Direct Lithium Extraction (DLE) technology, perfected over six years. This technology achieves a 96.7% lithium recovery rate from brine to battery-grade lithium carbonate.
EnergyX also claims to use 95.5% less water (non-continental) and produces 6% concentrated lithium chloride with 200 times fewer impurities than competitors. The project’s initial investment stands at $1 billion, with $50 million already disbursed. Financing includes a $690 million loan from the US EXIM Bank, with the remainder coming from investors like General Motors, POSCO, and ENI.
the engineering plan is developed in collaboration with Worley, while environmental work is handled by Chilean consultant Geobiota. If the CEOL is secured, production is expected to begin in 2027, with an initial capacity of 45,000 tons per year.
EnergyX’s strategy mirrors that of industry giants Albemarle and SQM, refining lithium concentrate on the coast into carbonate or lithium hydroxide. The proposed refinery in Mejillones could process between 500,000 and 1 million tons, potentially refining resources from other projects, including those in argentina.
The refinery’s construction is part of the initial $1 billion investment, but Egan and barrera envision even greater expansion. “We are going to be the largest lithium company in the world,” Egan declared, suggesting that future investments could reach $5 billion.
So, why Chile? “I trust in Chile as the most progressive country in South America. It is a first-world democracy and has a TDLC with the US,” Egan explained. “In addition,it is arduous to find a world-class resource,and we were lucky that it was available to be developed by our team.”
| key Highlights of EnergyX’s Black giant Project |
|—————————————————–|
| Location | Near Salar Punta Negra and Mejillones, Chile |
| Investment | $1 billion (initial phase) |
| Technology | Direct Lithium Extraction (DLE) |
| Lithium Recovery Rate | 96.7% |
| Water Usage | 95.5% less than competitors |
| Production Capacity | 45,000 tons/year (initial phase) |
| Refinery Capacity | 500,000–1 million tons/year |
| Expected Start Date | 2027 |
EnergyX’s Black Giant project is not just a game-changer for Chile’s lithium industry but a testament to the country’s potential as a global leader in sustainable energy resources. with its cutting-edge technology and ambitious vision, EnergyX is poised to redefine the future of lithium production.
