Compass Minerals, a prominent global provider of essential minerals, has announced the suspension of any further investment in its planned lithium project in Utah. This decision stems from the need for regulatory clarity in the evolving regulatory environment in the state.

Compass Minerals has a long history of responsible operations at its Ogden facility on the Great Salt Lake, with a track record spanning over half a century. The facility currently produces three essential mineral salts: sulfate of potash, sodium chloride, and magnesium chloride, providing employment for around 370 local workers. The proposed lithium project was expected to generate over 100 additional jobs in the region. Compass Minerals has been actively involved in the local community and is committed to safeguarding the long-term health and sustainability of the Great Salt Lake.

As previously announced, Compass Minerals aimed to develop a sustainable lithium carbonate equivalent (LCE) resource of approximately 2.4 million metric tons on the Great Salt Lake. The objective was to support the formation and expansion of an advanced battery supply chain in North America. By capitalizing on the synergies with its existing Ogden production assets, lithium chloride would have been the fourth mineral salt extracted from the same brine source, minimizing environmental impact without the need for additional brine extraction from the Great Salt Lake.

However, the passage of House Bill 513 (H.B. 513, Great Salt Lake Amendments) by the Utah State Legislature in March 2023, along with the subsequent regulatory rulemaking process, introduced significant uncertainty regarding the regulatory framework for lithium production on the Great Salt Lake. The regulatory developments, as well as the timing of potential investments, were clouded with uncertainty.

Compass Minerals has been actively collaborating with the State of Utah to ensure the bill's provisions were implemented in a way that would not hinder the company's progress in developing a sustainable lithium salt resource for the North American advanced battery market. Nevertheless, the proposed rule published by the Utah Division of Forestry, Fire, and State Lands (FFSL) in mid-October has introduced new obstacles to lithium salt production on the Great Salt Lake, further complicating the project's progress.

Consequently, Compass Minerals has decided to indefinitely suspend any additional investment in its Utah lithium project, except for specific commitments related to the early stages of constructing its commercial scale demonstration unit. During this period of project suspension, the company will reassign lithium-related personnel as needed. Additionally, Compass Minerals will explore potential partnerships at the project level with the goal of reducing its share of capital costs and mitigating execution risk.