Left: Kelly Khalil, Director of Marketing, Center: Teague Egan, CEO of EnergyX, cuts the ribbon at the launch of the Lonestar project in Texas on March 26. Image provided.
At a packed event in Hooks, Texas, EnergyX this week unveiled a first-of-its-kind lithium production facility – the Lonestar Project – marking a significant step toward creating a scalable domestic supply of battery-grade lithium in the United States.
The company’s currently operational pilot plant is capable of producing approximately 250 metric tons per year of lithium carbonate equivalent (LCE).
Although modest in production on a global scale, the facility represents a critical validation of EnergyX’s direct lithium extraction (DLE) and refining technologies under real-world industrial conditions.
EnergyX can now produce in-house a key component of its “GET-Lit” lithium separation technology portfolio on an industrial scale.
“Bringing the largest integrated DLE lithium display plant online in the United States is a foundational milestone for EnergyX and for domestic lithium production in the United States,” said Teague Egan, CEO of EnergyX.
“Not only does this facility validate the performance of our technology on an industrial scale under real-world conditions, it also makes EnergyX the lowest-cost product in the United States.”
The project comes amid accelerating global demand for lithium, driven by the growth of electric vehicles, grid-level energy storage and emerging technologies. Electric vehicle adoption alone has risen from about 85,000 vehicles in 2010 to about 20 million in 2025, with demand expected to continue to increase. Meanwhile, energy storage systems are expanding at an estimated rate of about 50% year-on-year.
Industry observers view the pilot facility as a crucial intermediate step between beta testing and full commercial deployment. By validating the process economics and system design, EnergyX positions itself to expand across its broader U.S. lithium footprint.
The plant is located in the Smackover Formation — a lithium-rich brine resource that extends from Florida to Texas — and is the first DLE facility in the state to process locally sourced brine.
EnergyX has gained a significant presence in the region, controlling 47,500 acres. The Lonestar Lithium project enables EnergyX to further improve the system design, verify process economics, and provide samples of 5 to 25 tons of battery-grade lithium to customers for qualification. The facility is the final step before commercial expansion across the company’s growing lithium footprint in the United States.
EnergyX has invested $30 million in the pilot plant, and then plans to build the commercial plant, which would amount to an investment of more than $1 billion, Egan said. MINING.COMAdding that the company has secured deals, but has not yet gone public.
Egan asserts that the company’s cost profile is the most competitive in the industry. See chart:
Texas Senator speaks
US policymakers have increasingly emphasized the importance of securing domestic supply chains for critical minerals. Senator Ted Cruz highlighted the project’s potential role in supporting energy security and defense preparedness by providing essential materials for advanced battery technologies.
Cruz spoke virtually to the company at the event, which was attended by 200 people and broadcast live to thousands.
“Congratulations to EnergyX and CEO Teague Egan on opening a first-of-its-kind lithium processing facility here in Texas,” Cruz said.
“Lithium produced at the Lonestar Project will help strengthen America’s energy security and defense readiness by providing critical materials needed for batteries used in critical military technology.”
Reduce US dependence on China
The facility is designed to demonstrate improvements in extraction efficiency, recovery rates, and cost competitiveness – key factors that have historically limited the viability of refining lithium outside China.
Currently, China dominates an estimated 70-75% of global lithium chemical conversion capacity, creating a major bottleneck in the global battery supply chain. This focus has made the United States dependent on foreign processing, even when domestic lithium resources are available.
The Lonestar project aims to address this imbalance by providing a scalable and cost-effective path to domestic refining. The plant will also produce sample quantities of battery-grade lithium – ranging from 5 to 25 tons – for qualification by end customers, including battery and cathode manufacturers.
Additional demand arises from sectors such as defense technology and robotics, reinforcing expectations that lithium requirements will rise significantly over the next several decades.
For EnergyX, the Lonestar plant represents more than just a technical milestone. It is a strategic attempt to reshape the economics of lithium refining in the United States – unlocking stranded resources, reducing dependence on foreign processing, and laying the foundation for a more resilient domestic ecosystem for battery materials.
If successful on a large scale, this approach could help rebalance the global lithium supply chain at a time when demand is poised to exceed historical norms.
