Eni Invests $225M in EnergyX Lithium Project

Italian energy giant Eni has committed a substantial $225 million strategic equity investment to EnergyX, propelling the development of the ambitious Black Giant lithium project in Chile. This significant capital infusion positions Eni as a minority stakeholder and is a cornerstone of the funding required to bring the large-scale lithium brine and refining operation in Chile's Antofagasta Region to full commercial realization.

The Black Giant initiative, situated on over 100,000 acres in the Domeyko Range, is engineered to yield 52,500 metric tons annually of lithium carbonate across its initial two phases, with provisions for considerable future expansion. Preliminary assessments, conducted by engineering firm Worley, indicate exceptionally competitive capital expenditures of approximately $14,500 per ton and operating costs around $2,944 per ton. These favorable economics are largely attributed to EnergyX's proprietary direct lithium extraction (DLE) technology, a suite of over 150 patented adsorbent, solvent extraction, and membrane processes known as GET-Lit.

This strategic partnership grants Eni the right to procure up to roughly 25% of the project's future lithium output. This secures long-term access to battery-grade lithium materials, crucial for Eni's own energy transition objectives. The investment from Eni complements a previously announced $690 million letter of intent for debt financing from the U.S. Export-Import Bank, bringing the total planned funding for the initial phases to nearly $1 billion, inclusive of financing costs. Goldman Sachs & Co. LLC advised EnergyX on this pivotal transaction.

The collaboration deepens an existing relationship, as Eni Next, Eni's venture capital arm, previously participated in EnergyX's $50 million Series B round in December 2022. Beyond financial backing, Eni will contribute technical collaboration and upstream development expertise, drawing on its extensive global energy infrastructure and subsurface engineering capabilities to accelerate project timelines.

EnergyX's vision extends to its Litio Mecca complex, a proposed integrated lithium refinery and conversion facility near the Port of Mejillones, with a potential investment of up to $5 billion. This ambitious undertaking aims to process not only Black Giant's output but also resources from across the lithium triangle, supporting a reliable and geopolitically aligned supply chain for the burgeoning electric vehicle and advanced manufacturing sectors. The global demand for lithium is projected to surge, driven by decarbonization efforts and national security interests in critical mineral supply chains.

The project has also garnered attention from governmental bodies. EnergyX has engaged with senior U.S. officials, including the U.S. Ambassador to Chile, to align Black Giant with secure supply chain objectives for the U.S. and its allies. This underscores the strategic importance of such projects in diversifying critical mineral sources. EnergyX CEO Teague Egan highlighted the significance of the Eni investment, stating it validates the project's potential and the efficacy of their DLE technology, envisioning it as the world's largest DLE operation.