EnergyX signed a memorandum of understanding with Compass Minerals International Inc. (NYSE: CMP) to develop a 30,000 tons-per-annum commercial lithium extraction and refinery facility near Utah's Great Salt Lake.

Under the agreement, EnergyX will design, fund, construct and operate the facility on land owned by Compass Minerals. The Ogden, Utah site contains an identified domestic resource of approximately 2.4 million metric tons of lithium carbonate equivalent, according to the company's press release statement.

EnergyX plans to invest approximately $400 million across two development phases. The first phase targets up to 10,000 tons annually from ponds currently used by Compass Minerals for salt, sulfate of potash and magnesium chloride production. The second phase would add approximately 20,000 tons annually from upstream brine concentration ponds.

The project will extract lithium without additional withdrawal from the Great Salt Lake. EnergyX will lease land from and pay production license fees to Compass Minerals, which will assign existing lithium infrastructure to EnergyX while bearing no capital costs.

The facility will use EnergyX's proprietary GET-Lit direct lithium extraction technology, supported by more than 140 patents. The project is expected to create nearly 200 jobs in the region and represents EnergyX's second flagship U.S. project alongside operations in the Smackover Formation of Texas and Arkansas.

"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 and CEO of EnergyX.

Definitive agreements are expected to be finalized over the coming months, subject to due diligence and regulatory approvals from the State of Utah.