ESM Secures $1.36 Billion DOE Loan for Lithium Production in California

EnergySource Minerals (ESM)

Innovative Technology to Enhance Lithium Supply for EV Batteries

EnergySource Minerals (ESM) has taken a significant step forward in the U.S. battery materials sector by securing a conditional loan of up to $1.36 billion from the U.S. Department of Energy (DOE). This funding aims to bolster domestic production of lithium hydroxide, a critical component in lithium-ion batteries.

Strategic Investment in Sustainable Technology

The loan will support ESM’s subsidiary, SPV ESM ATLiS (ATLiS), in establishing a production facility capable of generating 20,000 metric tonnes per year of lithium hydroxide. This output is expected to supply approximately 52 GWh per year of lithium-ion batteries, crucial for the burgeoning electric vehicle (EV) market.

A Milestone for U.S. Lithium Extraction

Situated in Imperial County, California, near the Salton Sea, the ATLiS facility will utilize direct lithium extraction (DLE) technology. This innovative process, which has been piloted in multiple states including Utah, Texas, Nevada, and California itself, is set to be the first of its kind to operate at a commercial scale in the U.S., marking a pivotal development in local lithium production.