EnergyX Just Landed a $2 Billion Lithium Deal With Trafigura

So basically: A lithium startup out of Austin called EnergyX signed a deal to sell 100,000 metric tons of battery grade lithium to Trafigura, one of the biggest commodity traders in the world. It runs 10 years and at today’s prices it’s worth over $2 billion. The lithium comes from their projects in Chile and Texas, with full scale production aimed at 2028.

Who’s EnergyX

EnergyX was started in 2018 by Teague Egan. Their whole thing is a different way to get lithium out of the ground.

The old way, especially in Chile, is pumping salty water called brine into giant ponds and letting the sun evaporate it for like a year or more. That’s what the picture up top is. It works, but it’s slow and uses a ton of land and water.

EnergyX does something called direct lithium extraction, or DLE. They pull the lithium straight out of the brine with their own tech, which they call GET-Lit. They say it’s covered by over 150 patents. Faster, way less land.

The deal

Here’s the breakdown:

• 100,000 metric tons of lithium over 10 years
• Take or pay, meaning Trafigura pays even if it doesn’t take the full amount
• About $20,000 a ton right now, so roughly $2 billion
• Lithium carbonate from Project Black Giant in Chile
• Lithium hydroxide from Project Lonestar in Texas

Trafigura is taking 66% of the first phase from Black Giant and 30% of the first phase from Lonestar. EnergyX says it’s talking to more buyers to get to 80% sold before it ramps up.

A big chunk of this is supposed to go into the US battery supply chain. So EV makers and big battery storage projects here.

Why a buyer matters so much

This is the part people skip. Building a lithium plant costs a fortune. Banks don’t want to lend you money unless somebody already agreed to buy what you make. That’s what this deal is.

The US EXIM Bank already put out a $690 million letter of intent to lend to EnergyX, and having a buyer locked in was one of the conditions. Eni, the Italian energy company, also put $225 million into the Chile project. So the money side is starting to come together.

Egan basically said the same thing. A long term buyer this big shows the market wants their stuff, and it gives lenders the confidence to fund construction.

Where they’re at

Their Lonestar plant in Texas started up in April 2026. They say it’s the biggest DLE lithium plant in the US. They also say their Chile demo plant is the biggest in that country. Black Giant is planned for 52,500 tons a year when it’s fully built.

They also have land in the Smackover area in Texas and Arkansas, which is turning into kind of a lithium hot spot.

Why it matters

Every EV and every home battery needs lithium. Right now most of the refining happens in China. If the US wants to build its own batteries, it needs its own lithium too. DLE could make that way easier because you don’t need giant evaporation ponds.

My take

$2 billion sounds huge, and it is, but it’s based on today’s lithium price and that price swings like crazy. And deliveries depend on their plants actually getting built and working at full scale.

Still, this is the first real buyer they’ve announced, and it’s a big one. That’s the step that turns a cool startup into an actual company. If DLE works at scale, it could change where lithium comes from. Would you rather the US make its own lithium even if it costs a bit more?