EnergyX is constructing a lithium iron phosphate cathode facility in Hooks, Texas, marking a significant push to expand U.S. battery manufacturing capabilities. The General Motors-backed startup aims to produce 15,000 metric tonnes annually of the critical component used in electric vehicles and drones, directly challenging China's grip on global supply chains.

The $230mn project, developed through a joint venture with Wildcat Discovery Technologies, could begin operations by 2028. EnergyX will supply lithium carbonate at discounted rates with price floors and ceilings, addressing volatility that saw prices swing from record lows to $17,500 per metric tonne. The company controls roughly 50,000 acres across the Smackover lithium region, deposits comparable to Chile.

China dominates 60-70% of lithium chemical refining and 85-90% of cathode manufacturing worldwide. Hooks, Texas location places the facility near EnergyX's existing Lonestar plant and a drone production site, creating what CEO Teague Egan calls Battery Mecca. The companies have applied for a $500mn Department of Energy grant to support the initiative.

However, cost challenges loom large. Building in the U.S. carries significantly higher expenses than Chinese operations due to regulatory hurdles and labor costs. Securing reliable customers also remains difficult—FT analysis shows 17 of 32 miner-carmaker deals from 2020-2024 were scrapped, renegotiated, or delayed. The project represents genuine progress toward domestic supply chain independence, though economic viability depends on attracting infrastructure investors comfortable with single-digit returns.