Eni S.p.A. E has taken a strategic step in its energy transition by agreeing to acquire a 25% stake in Black Giant SpA, EnergyX's Chilean subsidiary that is developing a lithium project near the Salar de Punta Negra in northern Chile. Eni’s total phased investment amounts to $225 million, strengthening its presence in the fast-growing critical minerals market.
The project will utilize EnergyX's proprietary Direct Lithium Extraction (DLE) technology, which enables more efficient lithium recovery while reducing water consumption through a closed-loop system with full brine reinjection. This environment-friendly approach is expected to drive competitive advantage as global demand for lithium continues to grow.
The Black Giant project is expected to produce 52.5 thousand tons per year (kton/year) of lithium carbonate equivalent at full capacity. Development will occur in two phases, with the first 7.5-kton/year production train scheduled to begin operations in 2028, followed by additional trains with a combined capacity of 45 kton/year, scheduled to begin operations in 2030. Beyond its equity stake, E will secure a seat on Black Giant's board of directors and an option to purchase up to 25% of total lithium production, ensuring reliable long-term access to a critical battery material.
The agreement diversifies Eni beyond its traditional oil and gas portfolio while strengthening its position across the battery value chain. The secured lithium supply will support E's Brindisi Gigafactory initiative for stationary lithium battery production, reducing future supply-chain risks. By combining EnergyX's innovative extraction technology with Eni's upstream expertise, the company is well-positioned to accelerate commercialization and strengthen its business model. As demand for lithium continues to grow, this investment enhances E's exposure to a high-yield market while supporting its long-term diversification strategy.
Eni currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the energy sector are Aker BP ASA AKRBY, Cenovus Energy Inc. CVE and Vista Energy, S.A.B. de C.V. VIST. VIST currently carries a Zacks Rank #3 (Hold), while CVE and AKRBY sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aker BP operates major hubs on the Norwegian Continental Shelf, including Alvheim, Edvard Grieg/Ivar Aasen, Valhall, Skarv and Ula, while also holding an ownership stake in Johan Sverdrup. AKRBY has broadened its exploration footprint by acquiring a 19% interest in promising licenses such as Grosbeak, Swisher, Toppand and Rover.
Cenovus drives integrated oil and gas operations across Canada and the United States through its upstream assets and downstream refineries. To increase production and enhance cash flow, CVE is advancing key growth initiatives, including the Christina Lake North and Sunrise expansions, the West White Rose offshore project and Foster Creek optimizations.
Operating across 205,600 acres in Vaca Muerta, Argentina's leading shale basin, Vista is positioned for substantial long-term growth. Backed by these extensive assets, VIST targets a daily production capacity of 200,000 barrels of oil equivalent by 2030.
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Eni SpA (E): Free Stock Analysis Report
Cenovus Energy Inc (CVE): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).