A group of investors in lithium technology firm EnergyX is looking at more effective ways to create the battery metal for the green energy transition. The group is led by South Korean giant Posco Holdings (005490. KS).

The drive to electrify the global economy has intensified the search for reliable sources of lithium and other essential minerals and raised awareness of as-yet untested direct lithium extraction (DLE) technology developed by EnergyX and its competitors.

If successful, DLE technology might generate the battery metal more quickly and economically than conventional evaporation ponds from worldwide brine resources, notably in northern Argentina, where Posco is constructing the Sal de Oro lithium project.

Elohim Partners and IMM Investment Global will contribute to EnergyX’s $50 million Series B fundraising round as part of the agreement. According to the firms, Posco, which invests through those funds, will cooperate with EnergyX to support the commercialization of its technology.

“In a world where lithium is of the utmost importance, we expect EnergyX to thrive in the lithium extraction market,” stated Jaeho Rhee, CEO of Elohim. The businesses choose not to disclose how much the partnership funds EnergyX Series B.

By the amount it invested in the privately owned business, Posco will be granted the opportunity to participate in other lithium projects that EnergyX develops. According to a Reuters story from April, General Motors (GM.N) is leading the EnergyX Series B.

Near Posco’s Sal de Oro project, EnergyX is constructing a DLE demonstration plant in Argentina’s Salta Province. According to the businesses, Posco will evaluate EnergyX’s technology before deciding whether to license it. EnergyX CEO Teague Egan said, “Posco is our flagship customer for Argentina.” “We hope this evolves into a full-blown commercial agreement.”

By producing 100,000 metric tons of the metal there by 2026, Posco said last year, it will invest $4 billion in Argentina and become the continent’s largest metal producer. Nearby lithium producers include Allkem (AKE.AX), Livent (LTHM.N), and others. At the location, Posco has a modest test facility with an annual production capacity of up to 2,500 metric tons of lithium.

Argentina is a member of South America’s “lithium triangle,” including Chile and Bolivia. This area is home to some of the greatest lithium reserves in the world.

By 2030, Posco, which manages the Ultium CAM cathode joint venture with GM, plans to sell $32.57 billion of battery materials. Egan said EnergyX is exploring Argentine brine reserves to buy in addition to working with Posco, but he declined to elaborate.

EnergyX, which has also constructed a DLE demonstration plant in Chile, was disqualified from a Bolivian lithium production competition last year. The competition was ultimately won by a team led by China’s CATL.