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General Motors-backed (NYSE:GM) lithium technology startup EnergyX said Wednesday it agreed to acquire 35,000 gross acres in the Smackover formation in southern Arkansas from Australia-based Pantera Lithium (OTCPK:PTMLF) for A$40M (~US$26.1M), reinforcing its position in North America’s most promising lithium region.
The deal boosts the holdings of privately held EnergyX to ~47,500 acres in the Smackover, which analysts estimate could contain more than 4M metric tons of lithium, enough to make millions of electric vehicles and other electronic devices.
Chevron recently bought Smackover acreage, joining Exxon Mobil, Albemarle, Standard Lithium and others with holdings in the region.
EnergyX’s A$40M deal includes A$6M in cash as well as ~2.3M shares in EnergyX that the companies are valuing at A$14.50 each (US$9.47).
EnergyX is building a lithium refinery in Texas that will process lithium from the Smackover brine, and the company aims to produce 12,500 metric tons/year of lithium by 2028 and 50,000 tons/year by 2030.