Imperial County Lithium Firm to SPAC at $4.7B
Controlled Thermal Resources Ltd, a supplier to GM's EV battery division based in Imperial County, is going public at a $4.7 billion valuation via SPAC. This highlights the LA/SoCal region’s rising influence in both cleantech and industrial supply chains. SoCal’s startup scene spans far beyond software, and energy, climate, and infrastructure are all investable themes.
CTR's merger with Plum Acquisition Corp IV (Nasdaq: PLMK) values the company at approximately $4.7 billion. The deal is expected to provide CTR with $300 million to advance its Hell's Kitchen project. Upon closing, the combined company is expected to be listed on the Nasdaq under the ticker symbol "CTRH". The Hell's Kitchen project aims to extract lithium from geothermal brines beneath the Salton Sea in Imperial County, California. CTR plans to use direct lithium extraction (DLE) technology, developed by Aquatech, to separate lithium from the brine without traditional evaporation ponds. After lithium extraction, the brine will be reinjected back underground, creating a closed-loop system. The project aims for initial construction to include a 50-megawatt geothermal facility and a lithium carbonate capacity of up to 25,000 metric tons per year. CTR anticipates producing 50 MW of power by 2028 and 25,000 metric tons of lithium per year by 2029. At full buildout, the site could generate up to 650 megawatts of geothermal power and approximately 100,000 metric tons of lithium carbonate annually. The company also intends to extract zinc, manganese, and potash from the brine. Imperial County's "Lithium Valley," adjacent to the Salton Sea, holds enormous lithium deposits. The California Energy Commission estimates the Salton Sea might produce 600,000 metric tons of lithium carbonate per year, from reserves of 3.4 million tonnes. This has led California Governor Gavin Newsom to refer to the area as "the Saudi Arabia of lithium". The Salton Sea's geothermal brine reservoir is located 0.62 to 1.86 miles below ground, with temperatures ranging from 250 °C to 380 °C. GM is working to establish a North American supply chain for EV batteries. By 2028, GM plans to increase the North American content of its battery supply chain eightfold. GM's joint venture with LG Energy Solution, Ultium Cells, is the largest OEM battery cell producer in North America. CTR's Hell's Kitchen project was added to a fast-track permitting list by the Trump administration. The project aims to provide a domestic supply of lithium and other critical minerals. The FAST-41 designation ensures a transparent federal permitting process. Direct Lithium Extraction (DLE) is a technology that enables rapid, high-efficiency lithium recovery without evaporation ponds. DLE methods include sorption, ion exchange, solvent extraction, and membrane processes. These methods selectively capture lithium ions from brine. Some community groups have raised concerns about the environmental impact of lithium extraction in Imperial County. Concerns include water usage, air quality, and potential impacts on the Salton Sea. A lawsuit challenging the project's environmental review was dismissed by a county judge in early 2025.
