Compass Minerals International said that it will manufacture the metal for the electric car batteries for Ford Motor Co (F.N) and other customers using a lithium extraction process developed by EnergySource Minerals LLC. Washington has pushed American businesses to develop more environmentally friendly ways to increase local manufacturing of battery metals. Direct lithium extraction (DLE) technology from EnergySource was chosen by Compass over four competitors.
Compass claimed to have studied EnergySource’s technology for more than two years and is certain that by 2025 it would be able to start manufacturing 10,000 tonnes of lithium yearly. According to the corporation, it would sell shares to Koch Industries Inc. for $252 million and use the money to pay for the project.
Along with EnergySource, Compass has agreements for the delivery of lithium with Ford and LG Energy Solution Ltd. Privately owned EnergySource, which counts oilfield major Schlumberger NV and mining investment firm Techmet as backers, has obtained its first technological license through the relationship. The adsorbent used by EnergySource technology isolates lithium from brine contaminants. EnergySource is constructing its own DLE project in the Salton Sea of California, but it issued a cautionary statement in June that a newly passed state lithium tax may compel it to make investments elsewhere.