gm is investing in a california lithium extraction project

General Motors Secures Lithium Supply from Domestic Source

General Motors is making a substantial investment in lithium sourced within the United States. The company announced Friday its position as the initial investor in a project spearheaded by an Australian firm.

This project, undertaken by Controlled Thermal Resources, focuses on extracting lithium – a crucial element in electric vehicle batteries – from the Salton Sea Geothermal Field, located near Los Angeles.

First Rights to Lithium Production

The automaker will be granted priority access to the lithium produced by Controlled Thermal Resources’ “Hell’s Kitchen” lithium extraction initiative. This ensures a dedicated supply for GM’s growing EV production needs.

Production from the Hell’s Kitchen project is anticipated to commence in 2024. The resulting lithium will be incorporated into GM’s Ultium battery cells, following rigorous validation and testing procedures.

Meeting Electrification Goals

While specific quantities were not disclosed, Tim Grewe, GM’s general director of electrification strategy and cell engineering, indicated the supply will represent a “significant amount” of GM’s North American lithium requirements.

Both GM and its competitors in the automotive industry will require considerable lithium volumes to achieve their ambitious electrification objectives. GM, for instance, aims to completely phase out internal combustion engines by 2035.

Increased Competition for Resources

This large-scale transition will inevitably intensify competition, extending beyond consumer markets to encompass the essential minerals needed for battery production.

Environmentally Conscious Extraction

Lithium is conventionally obtained through either hard rock mining or extraction from brine deposits. However, both of these methods have faced scrutiny regarding their environmental impact.

The CTR project distinguishes itself by utilizing renewable geothermal energy – generated from the Salton Sea Geothermal Field, a substantial area in the Imperial Valley already hosting 11 geothermal power plants – to power the lithium processing.

Closed-Loop Extraction Process

Furthermore, CTR emphasizes that its project employs a closed-loop direct extraction process. This system returns the processed brine to its original underground source and eliminates the creation of production tailings, a common byproduct of mining operations.

Domestic Lithium Production

Currently, the majority of global lithium supply originates from a limited number of countries, including Chile, Australia, China, and Argentina.

The United States currently possesses only one operational lithium production facility: a brine operation in Nevada owned by Albemarle, a major chemical manufacturer.

Growing Focus on U.S. Supply

Recent years have witnessed a heightened emphasis on bolstering domestic lithium production, driven by two key factors: the projected surge in demand, fueled by the shift towards battery electric vehicles, and a bipartisan commitment to maintaining U.S. competitiveness in emerging technologies.

California's Lithium Potential

Estimates from the California Energy Commission suggest that the state’s lithium deposits could potentially satisfy as much as one-third of the world’s current lithium demand.

The CTR project is among numerous initiatives focused on extracting lithium from the extensive brine fields of the Salton Sea.