Energy Exploration Technologies (EnergyX) has signed a memorandum of understanding with Compass Minerals to develop a commercial-scale direct lithium extraction (DLE) and refinery plant near the Great Salt Lake in Utah, US.

The facility, named Project Powder Hound, aims to produce 30,000 tonnes per annum (tpa) of lithium.

It will become one of the first commercial-scale DLE plants in the country.

Located in Ogden, the site holds a substantial domestic lithium resource of approximately 2.4 million tonnes of lithium carbonate equivalent (LCE).

EnergyX intends to fund, build and operate the facility with an investment of around $400m across two phases.

The project could generate more than $600m in annual revenue upon completion.

Compass Minerals president and CEO Edward Dowling said: “We are pleased to enter into an agreement to evaluate the leasing of land and licensing of the mineral-rich brine used in our operations to EnergyX.

“Leveraging portions of our existing infrastructure will facilitate EnergyX's development plans, support lake conservation efforts and enable Compass Minerals to further strengthen our balance sheet as we continue to prioritise our core Salt and Plant Nutrition businesses.”

Under the agreement, Compass Minerals will lease land to EnergyX and charge a lithium production licence fee. EnergyX will utilise existing infrastructure and plans to lease additional land for the expansion.

The development will not require additional water extraction from the Great Salt Lake.

EnergyX plans to use its GET-Lit technology and refining methods, protected by more than 140 patents.

These technologies focus on efficient lithium recovery with reduced water usage and environmental impact.

The venture is expected to create around 200 jobs in the area.

It aligns with EnergyX's efforts to enhance domestic battery-grade lithium supply and contribute to critical mineral independence.

This development forms part of the company’s strategic expansion along with its other flagship projects in Texas and Arkansas.

Definitive agreements are anticipated shortly, pending due diligence and regulatory approval from Utah authorities.