The transition to a net-zero economy could cost an estimated $75 trillion by 2050, according to Wood Mackenzie, a respected research organization. As it stands, one of the most critical barriers to a carbon-free economy involves the supply of the lithium used for batteries.
One major player in the transition may be EnergyX, a young company focusing on the direct lithium extraction and refinery value chain. Read on to learn more about EnergyX -- its mission, its prospects for an initial public offering, its financial outlook, and how you might be able to invest in EnergyX.
What is EnergyX?
EnergyX, formally known as Energy Exploration Technologies, is a Puerto Rico-based company that seeks to develop new methods of producing and refining lithium.
Lithium is one of the most critical elements in the global energy transition to a carbon-free economy and a key element for batteries. Lithium has typically been mined from rock ores that are crushed, with the element then being extracted from large evaporation ponds. The process, however, is hard on the environment, resulting in water pollution and depletion, loss of biodiversity, and increased carbon emissions. Every ton of lithium that's mined results in 15 tons of carbon dioxide emissions.
Lithium is a key element in batteries because of its light weight, long life, and ability to store large amounts of energy. About 300,000 tons of lithium were mined in 2020; EnergyX expects the demand to grow to 5.5 million metric tons by 2040. Companies like Tesla (TSLA -2.13%), Ford (F -1.39%), and General Motors (GM +0.74%) are especially reliant on its production as they ramp up production of electric vehicles (EVs) and battery products such as Tesla's Powerwall, a home energy storage solution.
EnergyX was created in 2018 after its founder, Teague Egan, took a sabbatical through the Salar de Uyuni, a part of South America thought to have as much as 60% of the world's lithium. He oversaw the development of a process that uses membranes, solvents, and ion adsorption to produce lithium in days instead of the typical 18-month period for conventional evaporation ponds. The average footprint of a lithium processing facility -- 15 square miles -- can be reduced to less than 0.2 square miles, and costs cut from $4,200 to about $3,500 per metric ton.
Since its founding, the company has raised $199.5 million and secured the rights to more than 100 patents for its five direct lithium extraction technologies. It expects to produce between 20 and 50 metric tons of lithium per year; by 2030, the company predicts it could produce as much as 500,000 metric tons. EnergyX plans to generate revenue by producing lithium, selling a production-based fee for its technology, and selling replacement materials such as membranes and adsorbents to companies that use its technology.
EnergyX made two significant moves in mid-2024. It announced plans to build a large production facility known as Project Lonestar in the Arkansas-Texas-Louisiana region and opened a new research and development (R&D) headquarters in Austin, Texas.
While companies focused on the energy transition have excited investors, lithium prices have been extremely volatile over the last few years. Prices climbed to $80,000 per metric ton in late 2022 but had fallen to less than $10,000 by early 2025 as oversupply and high interest rates that discouraged the purchase of EVs took a toll. Lithium prices aren't likely to remain low forever, though; S&P Global expects prices to reach a stable level between $20,000 and 25,000 per metric ton between 2024 and 2027.
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2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
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5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Pros and cons of lithium stocks
You may want to skip buying a lithium-related stock if:
- You believe the demand for lithium is exaggerated.
- You think interest rates will remain high, discouraging potential EV buyers.
- Promised production numbers or new lithium mining methods look too good to be true
- You're skeptical about the sustainability of lithium mining.
- You're concerned about the political stability of lithium-rich countries.
- You don't understand the market for lithium.
On the other hand, you may want to go ahead and buy a lithium-related stock if:
- You believe demand will continue to rise for lithium, even absent growth in electric vehicles.
- You think that the energy transition will accelerate, increasing the need for lithium.
- You believe the lithium industry can become more environmentally friendly.
- You think lithium prices will eventually rebound from their recent lows.
- You think the economy will rebound when interest rates are lowered, increasing interest in EVs.
As with any other investment, there's a short answer to why you might consider investing in this stock: It depends. Factors that might affect your decision include the level of your portfolio diversification, personal risk tolerance, company and industry knowledge, and assessment of a stock's competitive position.
If you've decided the pros of investing in the company outweigh the cons, then complete the order page, click the "Place Order" button at the bottom, and become a shareholder.
Is EnergyX profitable?
Since it's not a publicly traded company, EnergyX isn't required to file detailed financial information with the SEC. However, according to recent filings that contain limited financial data, the company is far from profitable. In a July 2024 filing, the company said it had lost $7.9 million in 2021, $18.4 million as of 2022, and a total of $33.4 million by the end of 2023. It said it expects to continue losing money because of the costs of building and operating pilot plants, buying equipment, and acquiring commercial contracts. In a May 2025 filing with the SEC, it reported a net loss of almost $20.8 million for its most recent fiscal year.
Does EnergyX pay a dividend?
EnergyX doesn't pay a dividend; start-up companies generally prefer to put any excess money back into the business rather than distribute dividends.
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Bottom line on EnergyX
There's no doubt that a massive change in energy markets is underway. Electric vehicles accounted for 4% of total car sales in 2020 but were expected by the International Energy Agency to grow to 20% in 2024. That's going to require a lot of lithium, and companies like EnergyX could be poised to take advantage of the trend.
Despite its promise, though, EnergyX is far from profitable, and there's no guarantee that it will turn the corner. Its solicitation for investments on social media platforms is unusual; it's hardly the sign of a company that's confident in its ability to attract significant investment. If and when EnergyX goes public, investors who believe in the company's future should consider it as part of a long-term buy-and-hold strategy.
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