Italian energy group Eni has committed US$225 million for a minority stake in the Black Giant lithium project in Chile, strengthening European involvement in an overseas lithium development targeting battery-grade production.
The investment agreement, announced on 6 July, will give Eni a 25% interest in Black Giant SpA, the Chilean subsidiary through which US-based EnergyX is developing the project in the Antofagasta region. Under the agreement, Eni will receive a board seat and the right to purchase up to approximately 25% of future lithium production from the project.
Black Giant targets 52,500 tonnes of lithium carbonate output
The Black Giant project is planned to produce up to 52,500 tonnes per year of lithium carbonate across its first two development phases. EnergyX estimates total project expenditure at just below US$1 billion, including financing costs.
The company has also received a US$690 million letter of interest from the US Export-Import Bank, although the indication does not represent a completed loan facility. The financing structure remains dependent on further project development milestones and completion of required approvals.
Direct lithium extraction technology forms project foundation
The project will use EnergyX’s direct lithium extraction (DLE) platform, supported by more than 150 patents. EnergyX estimates that engineering studies indicate capital intensity of approximately US$14,500 per tonne of annual production capacity. The company also estimates operating costs of around US$2,944 per tonne of lithium carbonate produced. These figures remain company estimates and require confirmation through construction and commercial-scale operation.
Eni secures downstream lithium supply option
Through the agreement, Eni gains exposure to future lithium production while supporting its plans to expand stationary battery manufacturing and energy-storage activities in Italy. The offtake rights provide a potential connection between Chilean lithium production and European downstream applications. The transaction combines several elements of critical-minerals supply-chain development, including strategic industrial investment, technical participation and future access to physical lithium supply.
Project financing model reflects critical minerals investment trends
The Black Giant investment follows a financing structure increasingly used in critical-minerals projects, where industrial partners provide early-stage capital, export-credit agencies support potential construction financing and offtake agreements link mining developments with downstream manufacturing. Eni’s US$225 million equity commitment represents a direct investment in the project, while the larger EXIM Bank letter of interest remains an indicative financing opportunity rather than secured debt.
Future project advancement will depend on several development factors, including resource validation, Chilean permitting, brine-management requirements, lithium recovery performance and the ability to scale direct lithium extraction technology from development stages into commercial operations.
