Key Highlights
- EnergyX has partnered with Compass Minerals to develop a 30,000 tpa lithium extraction project in Utah.
- The project, dubbed “Project Powderhound,” could become one of the first major commercial lithium production facilities in the U.S., with construction targeted to begin in 2028.
- By utilizing direct lithium extraction (DLE) technology and existing brine operations, EnergyX aims to reduce development costs, simplify permitting, and improve sustainability.
EnergyX is accelerating its push into domestic lithium production through a new partnership with Compass Minerals, a move that could position the company among the earliest large-scale commercial lithium producers in the United States.
The companies announced a memorandum of understanding to develop a commercial-scale lithium extraction and refining facility near the Great Salt Lake in Utah. Under the agreement, EnergyX will design, finance, build, and operate a 30,000-ton-per-annum direct lithium extraction (DLE) facility on land owned by Compass Minerals.
Internally named “Project Powderhound,” the initiative represents EnergyX’s third lithium project globally and its second within the U.S. However, according to company leadership, the Utah project could emerge as its fastest path toward commercial production due to its unique operational advantages.
Existing Infrastructure Could Accelerate Development
Unlike many lithium projects that require years of exploration and costly resource verification, Project Powderhound benefits from an already-operating brine system at Compass Minerals’ Ogden facility near the Great Salt Lake. Compass currently runs large-scale sulfate of potash and magnesium chloride operations at the site, providing ready-made infrastructure for lithium extraction.
According to EnergyX CEO Teague Egan, the availability of brine at the surface significantly lowers development risk and upfront costs.
EnergyX plans to use its DLE technology to extract lithium from Compass’s existing brine stream before returning the processed material to Compass’s operations. This arrangement may also streamline regulatory approvals, since the project would integrate into an already functioning industrial site rather than requiring entirely new infrastructure.
Sustainability and U.S. Supply Chain Goals
A major focus of the project is sustainability. EnergyX emphasized that the facility will not require additional water withdrawals from the Great Salt Lake, an increasingly sensitive environmental concern in Utah. Instead, the project relies solely on Compass’s existing brine flow, reducing ecological impact while improving operational efficiency.
Construction is currently targeted to begin in 2028, with the company aiming to produce lithium carbonate for use in battery supply chains. If successful, the project could strengthen U.S. energy security by reducing reliance on imported battery materials amid growing geopolitical concerns over critical minerals.
Beyond Utah, EnergyX continues expanding its lithium portfolio through projects in Texas and Chile while also evaluating opportunities in broader critical minerals markets, including nickel, cobalt, manganese, and even deep-sea polymetallic nodules as part of its long-term energy transition strategy.
Read More News on Mining and Metals.