Compass Minerals Partners on $400M Utah Lithium Facility Extracting 30,000 tpa
CMP•Compass Minerals will lease Utah brine ponds to EnergyX for a 30,000 tpa lithium extraction facility funded by $400 million across two phases. The Ogden site holds 2.4 million tons of lithium carbonate equivalent and will earn Compass Minerals production license fees without capital outlay.
1. Partnership Framework
Compass Minerals and EnergyX have signed a memorandum to explore development of a 30,000 tpa direct lithium extraction and refinery facility in Ogden, Utah. Under the agreement, EnergyX will lease brine ponds, fund project construction with $400 million, and pay Compass Minerals production license fees while assuming all capital costs.
2. Project Details and Resources
The planned facility, Project Powder Hound™, will operate in two phases: an initial 10,000 tpa extraction from existing salt ponds and a subsequent 20,000 tpa from upstream concentration ponds. The Ogden site contains an estimated 2.4 million metric tons of lithium carbonate equivalent and leverages EnergyX’s GET-Lit™ technology and industry-low CapEx of $12,500 per ton.
3. Financial and Strategic Impact
Compass Minerals will generate recurring license fee income without additional capital investment and expects the partnership to bolster its balance sheet. The project is projected to create nearly 200 jobs, support Great Salt Lake conservation, and align with Compass Minerals’ focus on core salt and plant nutrition businesses.
