GM-Backed EnergyX Signs $2B Lithium Supply Deal With Trafigura
GM sits 52% above its 52-week low of $54.33.
Summary
EnergyX, a lithium startup backed by General Motors and Eni, signed a binding $2 billion, 10-year offtake agreement with Trafigura for 100,000 metric tons of lithium from Chile and the US. The take-or-pay contract covers 5,000 metric tons per year each of lithium hydroxide and lithium carbonate, with production expected to start in 2028 in Chile and 2029 in Texas. For GM, this secures a potential future lithium supply chain partner as the automaker expands its EV battery production. The deal also advances EnergyX's $690 million US Export-Import Bank loan application, supporting its direct lithium extraction technology development. Trafigura plans to initially sell the lithium to Chinese customers, with a long-term goal of supplying US markets.
At the time of this announcement, GM was trading at $82.58 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $72.6B. The 52-week trading range was $54.33 to $91.85. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.