EnergyX Signs Agreement with Compass Minerals to Advance up to 30,000-ton Commercial Lithium DLE Facility in Utah

EnergyX and Compass Minerals (NYSE:CMP) entered a Memorandum of Understanding to explore a 30,000 tpa direct lithium extraction and refinery plant, Project Powder Hound™, near Utah’s Great Salt Lake.

Rhea-AI Summary

EnergyX and Compass Minerals (NYSE:CMP) entered a Memorandum of Understanding to explore a 30,000 tpa direct lithium extraction and refinery plant, Project Powder Hound™, near Utah’s Great Salt Lake.

The Ogden site holds about 2.4 million metric tons LCE. EnergyX plans to fund, build and operate the facility on Compass Minerals’ land in two phases, invest roughly $400 million, target $600M+ annual revenue at full build, and create nearly 200 jobs, subject to definitive agreements and regulatory approvals.

Argus May 18 session

-1.29% close to close Open Argus

Details

News Market Reaction – CMP

In the May 18 session, CMP declined 1.29%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement outlines a potential long-term growth avenue for CMP’s Utah assets through EnergyX...

Analysis

This announcement outlines a potential long-term growth avenue for CMP’s Utah assets through EnergyX’s planned 30,000 tpa DLE facility and roughly $400 million of third-party investment. It reinforces CMP’s role in critical minerals while keeping capital obligations limited under the described structure. Investors may watch for definitive agreements, regulatory approvals in Utah, and how this project complements CMP’s existing Salt and Plant Nutrition segments and recent balance sheet work.

Key Figures

Planned capacity: 30,000 tpa Lithium resource: 2.4 million metric tons LCE Project investment: $400 million +5 more

Planned capacity

30,000 tpa

Projected commercial-scale DLE and refinery facility in Utah

Lithium resource

2.4 million metric tons LCE

Identified domestic resource at Ogden, Utah site

Project investment

$400 million

Planned EnergyX funding across two project phases

Projected revenue

$600M+ per year

Expected annual revenue at full build of Project Powder Hound

Phase 1 capacity

10,000 tpa

Initial phase using existing Compass Minerals ponds

Phase 2 capacity

20,000 tpa

Additional potential capacity from upstream brine ponds

CapEx intensity

$12,500 per ton

Stated industry-low capital cost metric for the project

Job creation

200 jobs

Nearly 200 positions expected in the Ogden region

Historical Context

5 past events · Latest: May 13

5 events

1. May 13

   Conference participation

   24h Move

   -0.2%

   Participation in Deutsche Bank basic materials conference with investor meetings.

2. May 06

   Quarterly earnings

   24h Move

   +6.7%

   Q2 profitability, debt reduction and updated fiscal 2026 EBITDA guidance.

3. May 05

   Sector commentary

   24h Move

   +4.0%

   Article on China rare earth strategy mentioning CMP among Western players.

4. Apr 28

   Sector focus article

   24h Move

   -1.3%

   Coverage of North American rare earth supply chains including CMP exposure.

5. Apr 15

   Earnings call date

   24h Move

   +4.2%

   Announcement of Q2 results release and conference call schedule.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

direct lithium extraction (dle), lithium carbonate equivalent (lce)

2 terms

direct lithium extraction (dle) technical

"30,000 tpa commercial-scale direct lithium extraction (DLE) and refinery plant"

Direct lithium extraction (DLE) is a set of technologies that pull lithium directly out of salty water sources using selective filters, chemical traps or electric processes instead of slow, open-air evaporation ponds. For investors, DLE matters because it can produce lithium faster, with a smaller land and water footprint and potentially lower cost, changing how quickly new battery-grade supply comes to market and affecting prices and project risk.

lithium carbonate equivalent (lce) technical

"approximately 2.4 million metric tons of lithium carbonate equivalent (LCE)"

Lithium carbonate equivalent (LCE) is a common unit that converts all forms of lithium — like lithium hydroxide or spodumene concentrate — into the amount that would be contained in lithium carbonate, so different products and deposits can be compared on the same scale. Investors use LCE to compare mine resources, production targets and supply forecasts much like converting different currencies into a single one, which helps assess potential revenue, market share and exposure to battery demand.

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HIGHLIGHTS:

●  EnergyX and Compass Minerals enter into an agreement to advance EnergyX's planned 30,000 tpa commercial-scale direct lithium extraction (DLE) and refinery plant near Utah's Great Salt Lake; the EnergyX project has been named Project Powder Hound™.

●  The Ogden, Utah, site holds an identified domestic resource of up to 2.4 million metric tons of lithium carbonate equivalent, one of the richest lithium brine regions in the U.S.

●  EnergyX will commit all funding with plans to invest approximately $400 million across two phases, projecting $600M+ in annual revenue at full build.

●  Project Powder Hound™ will be one of the first commercial-scale DLE facilities in the U.S., powered by EnergyX's proprietary GET-Lit™ technology and 140+ patents.

AUSTIN, Texas , May 18, 2026 /PRNewswire/ -- Energy Exploration Technologies Inc. ("EnergyX"), a leading innovator in sustainable direct lithium extraction (DLE) and refining technologies, today announced that it has entered into a Memorandum of Understanding with Compass Minerals, a global leader in the production of essential minerals. Per the agreement, the companies will explore the development of EnergyX's projected 30,000 tons-per-annum (tpa) commercial-scale DLE and refinery facility near the Great Salt Lake in Utah.

Under the terms of the agreement, EnergyX plans to design, fund, construct and operate a commercial DLE and refining facility on land owned by Compass Minerals. The Ogden, Utah, site has been identified as a significant domestic resource of approximately 2.4 million metric tons of lithium carbonate equivalent (LCE). As per the terms being explored, EnergyX will lease land from and pay a lithium production license fee to Compass Minerals, which will assign to EnergyX its existing lithium infrastructure and bear no capital costs in connection with the project.

The concept under consideration would enable EnergyX to develop the project in two phases, with the first up to 10,000 tpa derived from ponds currently used by Compass Minerals for the production of its salt, sulfate of potash and magnesium chloride products. The second phase of an additional potential ~20,000 tpa is to be sourced from upstream brine concentration ponds. Across both phases, lithium will be extracted without incremental withdrawal from the Great Salt Lake. EnergyX plans to invest approximately $400 million in the project, taking advantage of its industry-low CapEx costs of $12,500 per ton. The project is expected to create nearly 200 jobs in the region.

This development in Ogden would mark a major milestone for EnergyX, serving as the company's second flagship U.S. project alongside its operations in the Smackover Formation of Texas and Arkansas. Together, these projects represent transformative steps toward securing a sustainable domestic supply of battery-grade lithium and strengthening the United States' critical minerals independence.

The planned lithium facility in Ogden will be powered by EnergyX's proprietary GET-Lit^™ DLE and refining technologies, supported by more than 140 patents. These technologies are engineered for superior lithium recovery, significantly reduced water consumption, and minimal environmental impact compared with traditional methods.

"Our partnership with Compass Minerals demonstrates how strategic collaboration can accelerate the buildout of a secure, self-reliant U.S. critical minerals supply chain," said Teague Egan, Founder & CEO of EnergyX. "We are thrilled to advance Project Powder Hound^™ in Utah alongside an incredible partner in Compass Minerals."

"We are pleased to enter into an agreement to evaluate the leasing of land and licensing of the mineral-rich brine used in our operations to EnergyX," said Edward C. Dowling Jr., president and CEO of Compass Minerals. "Leveraging portions of our existing infrastructure will facilitate EnergyX's development plans, support lake conservation efforts, and enable Compass Minerals to further strengthen our balance sheet as we continue to prioritize our core Salt and Plant Nutrition businesses."

Definitive agreements are expected to be finalized over the coming months, subject to satisfactory due diligence and required regulatory approvals from the State of Utah. This initiative further solidifies EnergyX's leadership role in advancing the North American lithium supply chain and positions the company to meet surging demand for lithium driven by the global energy transition.

About EnergyX
Energy Exploration Technologies Inc. (EnergyX) is a sustainable energy company transforming lithium extraction for batteries. Using proprietary direct lithium extraction (DLE) technology, it aims to lower costs and boost production. Founded in 2018 by Teague Egan, it is based out of San Juan, Puerto Rico, and currently has offices and laboratory facilities in Austin, Texas, and operations throughout Chile in the South American Lithium Triangle. Learn more at energyx.com.

About Compass Minerals
Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature's challenges for customers and communities. The company's salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops while supporting sustainable agriculture. Compass Minerals operates 11 production and packaging facilities with more than 1,800 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products.

Media Contact:
EnergyX Communications
Kellee Khalil, Chief Marketing Officer
press@energyx.com

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SOURCE EnergyX

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Compass Minerals (NYSE:CMP) announce with EnergyX on May 18, 2026?

Compass Minerals and EnergyX announced a Memorandum of Understanding to explore a 30,000 tpa lithium DLE and refinery facility in Ogden, Utah. According to EnergyX, the project, called Project Powder Hound™, would use Compass Minerals’ land and existing brine infrastructure.

How large is the planned EnergyX lithium facility with Compass Minerals (CMP) in Utah?

The planned facility is projected at up to 30,000 tons per annum of lithium production. According to EnergyX, the project would be built in two phases, initially up to 10,000 tpa and a potential additional ~20,000 tpa from upstream brine concentration ponds.

What lithium resource supports the EnergyX and Compass Minerals (CMP) Project Powder Hound™?

The Ogden, Utah, site hosts an identified domestic resource of about 2.4 million metric tons of lithium carbonate equivalent. According to EnergyX, this makes it one of the richer lithium brine regions in the United States for future DLE development.

How much will EnergyX invest in the Compass Minerals (CMP) lithium project and what revenue is projected?

EnergyX plans to invest approximately $400 million in Project Powder Hound™. According to EnergyX, the company targets more than $600 million in annual revenue at full build, based on industry-low capital costs of about $12,500 per ton of capacity.

How will the EnergyX–Compass Minerals (CMP) lithium project impact Compass Minerals’ capital spending?

Compass Minerals is not expected to bear capital costs for the lithium project. According to Compass Minerals, EnergyX would fund, design, construct and operate the facility, while Compass Minerals would lease land, license brine use, and assign existing lithium infrastructure.

What environmental approach will the EnergyX and Compass Minerals (CMP) lithium project use at the Great Salt Lake?

The project plans to extract lithium without incremental withdrawal from the Great Salt Lake. According to EnergyX, its proprietary GET-Lit™ technology is engineered for higher lithium recovery with reduced water use and lower environmental impact than traditional evaporation methods.

When will definitive agreements for the EnergyX and Compass Minerals (CMP) lithium project be finalized?

Definitive agreements are expected to be completed over the coming months, but timing depends on due diligence and approvals. According to EnergyX, finalization is subject to satisfactory review and required regulatory approvals from the State of Utah before development can proceed.