California company awarded $100M to develop critical mineral facility on Great Salt Lake shore

SALT LAKE CITY — The U.S. Department of Energy on Thursday announced Waterleaf P1 HoldCo, a subsidiary of California-based Lilac Solutions, was awarded a $100 million federal grant to build and operate a commercial lithium extraction and refining facility on the Great Salt Lake's northeastern shore.

The project was one of seven selected to receive funding from a $500 million grant pool administered by the department to "expand critical mineral and material processing, battery manufacturing, and recycling capacity in the United States," according to a department release.

The first phase of the projects aims to double current U.S. lithium production and set the groundwork for future expansion, the department said.

With the U.S. rapidly expanding domestic sources of critical minerals in hopes of reducing reliance on foreign sources, Utah is not just following suit but positioning itself to be a domestic leader in the critical minerals race.

In January, Utah Gov. Spencer Cox announced the launch of "Mission Critical" to reduce America's dependence on China for materials essential to national security and to make the Beehive State the top destination for critical mineral extraction and processing.

China controls over 90% of the world's refinery production of key components in electronics, according to data from the Institute for Energy Research. The country also produces about 70% of the world's rare earth elements and more than 60% of global titanium mining and aluminum smelter production.

And the statewide push continued in April when the University of Utah's board of trustees voted to establish the Institute for Critical and Strategic Minerals.

"The overall plan and strategy is deceptively simple, which is trying to onshore as much of the critical minerals extraction, processing and commercial availability as possible in the United States. Lithium is obviously one of the most important critical minerals, and we've had trouble over time getting fully domestic production of lithium," Department of Energy Deputy Secretary James Danly told reporters Thursday during a press conference in Salt Lake City.

Our state is home to 40 of the 50 minerals critical to America's economy and national security, which means Utah is uniquely positioned to lead as we strengthen domestic supply chains and reduce our dependence on foreign adversaries.

From research and innovation to responsible… pic.twitter.com/aSBGXy5XqC

— Governor Cox (@GovCox) June 11, 2026

Utah, Danly said, is particularly ripe for critical mineral production.

"Eighty percent of the list of critical minerals are here one way or another in deposits in the state," Danly said. "I think Utah is likely to be one of the leaders in critical mineral efforts simply because of the natural resources and the willingness of the state to partner with the federal government."

Of course, with the freshly announced lithium extraction and refining facility's positioning on the shore of the Great Salt Lake, both water use and contamination are potential areas of concerns.

According to the Department of Energy's grant announcement, the facility will return processed brine "back to the lake with no net water loss."

Environmental Protection Agency Deputy Administrator David Fotouhi said the agency has been working closely with the state "on all issues related to the Great Salt Lake."

"It's an ongoing discussion, and the federal government is standing with the state to address these issues directly," Fotouhi said.

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