Energy X BESS Projects, $225 M Eni Deal, 3 Commercial Plants, and a Compass Minerals Agreement (2026)

Lithium Supply Chain Risks, Energy X $225 M Eni Deal, and Vertical Integration

Energy majors are shifting from passive venture investments to direct project equity in critical mineral technologies, a strategy designed to secure upstream supply and mitigate exposure to commodity volatility and geopolitical risk. This transition marks a recognition that controlling the physical supply of materials like lithium is as critical as owning the energy generation assets themselves. The surge in demand from electric vehicles and the new, power-intensive needs of AI data centers for battery energy storage systems (BESS) has made this vertical integration a strategic imperative.

• Between 2021 and 2024, investment in lithium technology companies primarily took the form of corporate-level venture capital, aimed at de-risking technology. In 2026, the model shifted to project-level equity from strategic partners, exemplified by Eni’s $225 million investment directly into Energy X’s Black Giant™ project to fund construction.
• The market driver has expanded beyond EVs. AI data centers are projected to create over 150 TWh of demand for energy storage by 2050, turning BESS into a primary demand source for lithium and making control over the lithium supply chain essential for technology and energy infrastructure companies.
• To secure its position, Energy X has pursued vertical integration. The partnership with Wildcat Discovery Technologies to build a 15, 000-tonne LFP cathode plant in Texas moves the company downstream, creating a domestic supply chain from brine to battery material.

$225 M Project Equity, Energy X Secures Eni for Chilean Lithium Plant

In 2026, Energy X secured over $225 million in project-specific capital, signaling a market pivot from funding corporate R&D to financing the construction of large-scale, revenue-generating physical assets. This funding model validates the company’s technology for commercial deployment and de-risks the multi-billion-dollar capital requirements needed to build out its project pipeline. This differs from earlier venture rounds, which focused on technology development rather than asset construction.

• The cornerstone transaction was Italian energy major Eni’s July 6, 2026, agreement to invest $225 million for a 25% stake in the Black Giant™ project in Chile. This capital is designated specifically for project execution, funding the development of a facility designed to produce 52, 500 tonnes per annum (tpa) of battery-grade lithium.
• This project-level investment from a strategic partner like Eni validates the economic and technical case for the project, making it easier for Energy X to secure the remaining debt and equity financing required for the multi-billion-dollar facility.
• This model is being replicated across its portfolio. The agreement with Compass Minerals to develop a 30, 000 tpa DLE facility in Utah, with an estimated project cost of $400 million, and the $230 million LFP cathode joint venture with Wildcat Discovery Technologies, both rely on securing capital for specific, large-scale asset construction.

Table: Energy X Strategic Project Investments in 2026

Energy X 3 Major Partnerships: Eni, Compass Minerals, and Wildcat (2026)

In 2026, Energy X executed a series of strategic partnerships that vertically integrated its business from upstream lithium extraction in world-class brine fields to downstream cathode material manufacturing in the United States. These alliances are not just financial but are deeply operational, combining Energy X’s technology with the assets, market access, and project execution capabilities of its partners. This strategy builds a resilient, multi-faceted business capable of navigating supply chain complexities.

• The partnership with Eni provides capital and mega-project execution expertise for the Black Giant™ project in Chile. This alliance allows Energy X to accelerate the development of a large-scale international asset while mitigating financial and construction risks.
• The agreement with Compass Minerals provides access to a significant U.S. brine resource at the Great Salt Lake in Utah. This partnership allows Energy X to demonstrate the versatility of its DLE technology on a different brine chemistry and capitalize on U.S. policy incentives under the Inflation Reduction Act.
• The joint venture with Wildcat Discovery Technologies moves Energy X downstream into the production of lithium iron phosphate (LFP) cathode active materials. This creates a captive customer for its domestically produced lithium and establishes a “brine-to-battery” supply chain within the U.S.

US vs. Chile, Energy X Secures Assets in Two Key Lithium Regions

Energy X has strategically established a commercial footprint in both the established, high-concentration brines of Chile and the emerging, policy-supported brine fields of the United States. This dual-hemisphere approach serves as a natural hedge, diversifying the company against geological, political, and market-specific risks. It positions the company to capitalize on the unique advantages of each region: unparalleled resource quality in South America and strong policy incentives in North America.

• In Chile, the Eni-backed Black Giant™ project in the Salar de Atacama gives Energy X access to one of the world’s highest-grade and lowest-cost lithium brine resources. This is a resource-quality play aimed at achieving large-scale, cost-competitive production for the global market.
• In the United States, Energy X is executing a policy-driven strategy. Projects like the Project Lonestar demonstration plant in Texas and the planned 30, 000 tpa commercial facility with Compass Minerals in Utah are designed to leverage domestic production incentives and tax credits from the Inflation Reduction Act (IRA).
• This geographic diversification is critical for supply chain resilience. It allows Energy X to supply customers in different regions from local sources, reducing transportation costs and navigating potential trade barriers, while also mitigating the risk of operational disruptions in any single country.

DLE Technology Maturity, Energy X Moves from TRL 7 to Commercial Scale

Energy X’s Direct Lithium Extraction (DLE) technology has advanced from pilot demonstration, or Technology Readiness Level (TRL) 6-7, to the commercial execution stage of TRL 8-9, a transition validated by major project financing from strategic partners in 2026. The successful operation of its demonstration facility provided the critical performance data needed to secure capital for full-scale commercial plants, marking the crucial jump from proving a technology works to proving it is economically viable at scale.

• The TRL 7 validation point was achieved at Project Lonestar, the $30 million, 250 tpa demonstration plant in Texas commissioned in March 2026. With nearly 10, 000 hours of pilot operations, this facility proved the technical feasibility of the GET-Lit™ DLE platform in a continuous, operational environment.
• The $225 million investment from Eni is explicitly to bridge the gap to TRL 9 (actual system proven in an operational environment). This capital will fund the construction of the 52, 500 tpa Black Giant™ project, the company’s first full-scale commercial facility.
• The technology’s competitive advantage underpins this commercial leap. Energy X’s DLE platform targets over 90% lithium recovery rates, compared to 40-60% for traditional evaporation ponds, with a projected operating cost of just $2, 944 per ton, creating a compelling economic case for its strategic investors.

1 Critical Signal, Energy X Project Lonestar Performance Data

The single most critical forward-looking signal for Energy X is the public release of operational performance data from its Project Lonestar demonstration plant in Texas. While strategic investments validate market confidence, hard data on costs, recovery rates, and uptime from a continuously operating facility is the ultimate proof of commercial viability. This data will serve as the foundation for the final investment decision on its multi-billion-dollar commercial projects.

• If the data from Project Lonestar confirms the projected operating expenditure of approximately $3, 000 per ton and lithium recovery rates above 90%, it will substantially de-risk the $225 million Eni investment and all future projects. This would likely accelerate a final investment decision on the Black Giant™ facility.
• Watch for the conversion of existing relationships with partners like General Motors and POSCO into binding, long-term offtake agreements for the lithium produced from the upcoming commercial plants. Such agreements are essential for securing the project financing needed for construction.
• These events could trigger further strategic actions. A strong validation of the technology and economics could prompt Energy X to pursue an Initial Public Offering (IPO) to fund its next wave of expansion. It may also force competitors, including other energy majors and DLE technology developers like CATL, to respond with similar strategic investments to secure their own positions in the lithium supply chain.

The questions your competitors are already asking

This report covers one angle of Energy X’s path to commercial production. The questions that matter most depend on your work.

• Direct lithium extraction companies commercial projects
• Lithium offtake agreements car manufacturers
• US government funding for lithium projects
• Risks of direct lithium extraction technology scaling

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