To Get in on Lithium Boom, Consider Investing in KMX Technologies

The demand for clean water, lithium, and critical rare earth metals is only going to increase in the future, and KMX Technologies is poised to meet those needs.

a lithium ion battery
Source: Olivier Le Moal/ShutterStock.com

KMX’s technology could become crucial for lithium and rare earth procurement and next-generation water treatment. The Toronto-based company is now raising crowdfunding equity funds at NetCapital. In this report, we’ll take a look at why it might be a good investment.

Electronic vehicles can’t run without batteries, and lithium is a critical component of rechargeable batteries… including those that power PCs, smartphones and so much more.

Rare-earth resources, like the neodymium used to make special magnets, are also highly sought after – again, to meet the need for use in emerging technologies, like harvesting green energy.

Rare earth elements, or REEs, are a group of 17 metals that, while not exactly rare, can be difficult to find and extract. These metals contain unique magnetic, heat-resistant, and phosphorescent properties. They’re critical to the technology and defense industries and are key components of missile guidance systems, lasers, electronic displays, radar, and satellites.

KMX is changing how lithium and REEs are extracted and secured with its proprietary technology. It offers zero-waste solutions and more efficiency to separate the elements from waste. The company is also addressing the need to preserve our most precious and limited resource, water, by developing next-generation water treatment and proprietary methods for purifying the toughest waste streams.

KMX Technologies Harnesses Lithium Extraction Technology

Between 2016 and 2020, the global demand for lithium increased by 116 percent, according to VisualCapitalist.com. And lithium demand is expected to increase approximately 800% in the next 20 years, according to KMX.

That’s good news for KMX, as hard-rock mining is expected to diminish during that time frame and brine-extracted lithium becomes more common. KMX’s technology is focused on improving the brine “mining” method.

Many critical components of highly sought-after technologies require lithium to function. While it’s a fairly plentiful element, the methods used to extract it can be environmentally unfriendly and unsustainable.

Here are just a few everyday items that require lithium:

  • Electronic vehicles
  • Cell phones
  • Laptops
  • Marine motors
  • Electric wheelchairs
  • Magnetic resonance imaging, or MRIs
  • Pacemakers
  • Hearing aids

KMX uses its direct lithium extraction amplifying technology not only to increase lithium production by 500%, but also to improve water runoff quality. More on conserving water in a minute…

Right now, lithium miners can’t keep up with demand.

How does KMX Technologies factor into this boom?

The company is ready to deploy its proprietary methods to improve existing lithium mines’ processes for extracting the valuable element from brine. KMX’s technology allows lithium to be extracted at cooler temperatures, while conserving as much water and land as possible.

Its technology creates a more streamlined process that, as mentioned, KMX claims will increase productivity by 500% versus conventional technologies.

Rare Elements, Common Uses

Perhaps elements like neodymium, praseodymium, and dysprosium don’t mean much to you. But these elements are essential in the fields of aerospace and defense… and in EVs, medtech devices, and PCs and smartphones.

Companies providing these critical elements stand to make big profits… the U.S. Department of Defense recently announced Rare Earth Element Awards for companies that develop effective processing strategies. According to KMX, 920 pounds of REEs (rare earth elements) are needed to manufacture just one F-35 fighter jet.

KMX’s critical minerals recovery process separates these valuable elements from wastewater to give an 80% cost savings over mining them. KMX also possesses the technology to extract and purify water and other minerals from tailings — the waste streams left after the valuable elements have been mined.

President Biden has set a goal to have 50% of the cars sold in 2030 be electronic. But that benchmark will require far more lithium and REEs than the U.S. can mine and procure from other countries. According to Forbes, that’s about 10 times the amount we can procure right now. To meet other green economy goals, like wind power, EVs, and cell phones, that number balloons to 20 to 25 times more.

Demand for REEs is only going to increase, and KMX stands to meet the need while minimizing the harmful environmental effects of traditional mining.

KMX Wants Water, Water Everywhere

KMX uses underlying hollow-fiber vacuum membrane distillation methods for water reuse. See the graphic below for more on how KMX’s tech works.

Source: KMX Technologies

Christopher Kelley, KMX board member, said, “The rising costs of water, wastewater disposal, and resource constraints are driving industrial users to seek more efficient and sustainable water management practices in the extractive industries… KMX technology provides a path to reducing constraints and moving the industry towards sustainable development.”

How to Invest in the Lithium Boom and KMX

KMX CEO Zachary Sadow cites two letters of intent from Cornish Lithium and CleanTech Lithium as the impetus for preparing upcoming trials and demos in 2022.

With lithium as its core focus, KMX could see major success this year.

According to its December 2021 update:

KMX was recently named one of four ‘EV Battery Startups Worth Watching’, by The Electric…The other three companies on the watchlist have all recently completed Series A funding rounds ranging from $20 million to $25 million, with leading EV and battery-focused backers including Breakthrough Energy Ventures, BMW i Ventures, Andreessen Horowitz, and Social Capital. KMX is in great company and punching above its weight as the only seed round stage company on the list (our current investment round is live on NetCapital).

If you’d like to hitch your private investing portfolio to the growth in the lithium, rare earth, and clean water tech markets, then this is an investment worth looking at. The company is valued at more than $40 million. This offering is available on NetCapital.

On this date of publication, Vanessa Rush did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Vanessa Rush is a former journalism instructor with more than 20 years of experience writing and editing in the trucking industry, health and fitness, law, B2B, and the financial industry.


Article printed from InvestorPlace Media, https://investorplace.com/2022/01/to-get-in-on-lithium-boom-consider-investing-in-kmx-technologies/.

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