GEN1 Energy Secures Additional 10 Billion KRW for US Salt Lake Acquisition... "Expecting Benefits from IRA Implementation"

GN1 Energy announced on the 4th that it has decided to conduct a third-party allotment paid-in capital increase worth 10 billion KRW targeting the Swallow Investment Association. Combining the company's existing cash holdings, the paid-in capital increase of Xtralit, and the planned convertible bond issuance amount, it is expected to hold approximately 100 billion KRW in cash assets.

A company official stated, "Investors who highly evaluated the growth potential of the lithium direct extraction business requested to participate in the paid-in capital increase," adding, "Since we have secured Israel's outstanding lithium direct extraction technology, we are prioritizing the acquisition of salt lakes in the United States."

On the 3rd, GN1 Energy decided to invest 15 million USD (approximately 19.43 billion KRW) in Israel's Xtralit. After the investment, its shareholding ratio will be 29.88%, making it the largest shareholder as a single investor.

This investment is because Xtralit is conducting lithium direct extraction with global partners in the United States, Argentina, Jordan, Turkey, and other countries. Since its technology has already been verified by Israeli research institutions and global companies, it is judged that rapid results can be achieved upon securing salt lakes.

GN1 Energy is currently constructing a pilot plant using lithium direct extraction methods at the Great Salt Lake in the United States and is conducting due diligence on the Brawley Omat geothermal power plant in the U.S.

The official explained, "The geothermal water held by the Omat geothermal power plant contains more lithium than existing salt lakes, and the reserves of geothermal water are abundant compared to nearby geothermal power plants, so expectations for the lithium extraction business are high," adding, "An independent due diligence on the Omat geothermal power plant is underway, and after the due diligence, we plan to proceed with full-scale acquisition work."

In particular, interest in GN1 Energy's lithium extraction is expected to increase due to the U.S. Inflation Reduction Act (IRA). The IRA stipulates subsidies of up to 7,500 USD for electric vehicle purchases. To receive this subsidy, from this year, at least 40% of the battery's key minerals must be sourced from the United States or countries that have free trade agreements (FTA) with the U.S. Furthermore, from 2025, key minerals must not be sourced from foreign entities of concern (FEOC).

The official said, "We plan to focus on acquiring U.S. salt lakes and establishing lithium production facilities in accordance with the detailed guidelines of the IRA," adding, "Although lithium sourcing is expanding to Australia and Chile, we believe the importance of U.S.-produced lithium will increase." He continued, "We are making every effort to secure new salt lakes using our existing human network."

This content was produced with the assistance of AI translation services.