GEN1 Energy has completed its investment in Israeli company Xtralit, which operates in the lithium direct extraction (DLE) business. The company also acquired the exclusive domestic sales rights for the sorbent essential for lithium extraction, aiming to maximize synergy effects.
GEN1 Energy announced on the 7th that it completed a $15 million investment in Xtralit on the 6th. The acquisition method was through participation in a paid-in capital increase by acquiring new shares. After the investment, its shareholding ratio reached 29.88%, making it the largest shareholder among single investors.
Xtralit has technology that enables lithium extraction at low salinity using an ion exchange method with a proprietary sorbent, allowing more lithium to be extracted in a shorter time. Based on three related U.S. patents, it is collaborating with global energy companies.
Along with acquiring shares, GEN1 Energy also secured exclusive domestic sales rights for the sorbent. This is to consider collaboration possibilities with other companies beyond the lithium direct extraction pilot plant construction project that GEN1 Energy is promoting in the U.S.
A company official said, "To respond to the U.S. Inflation Reduction Act (IRA), domestic companies are securing overseas salt lakes to extract lithium," adding, "If a company headquartered in Korea intends to extract lithium from salt lakes using Xtralit's technology, it means they must sign a supply contract for the sorbent necessary for lithium extraction with GEN1 Energy."
Additionally, GEN1 Energy plans to jointly consider establishing a joint venture (JV) with Xtralit. GEN1 Energy will provide funding and operational support for securing salt lakes, while Xtralit will support salt lake extraction technology, aiming to devise a plan that maximizes mutual benefits.
The official added, "With the investment in Xtralit completed, we believe market concerns about securing lithium extraction technology have been dispelled," and "We will now focus all efforts on securing salt lakes and strive to show results as quickly as possible."
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