Sam Altman Invests: California Startup's Electrolysis Magnesium Technology Gains Auto Industry Approval, Aims for 50,000 Ton Annual Production

Sam Altman Places Big Bet as California Startup Gains Favors from Automakers, Aims for 50,000-Ton Annual Production Magnesium, a critical lightweight metal, is not only essential for manufacturing vehicles and aircraft components but also finds applications in national defense and industrial sectors, including steel and aluminum production processes. However, traditional magnesium production methods generate significant greenhouse gases. Recently, a startup named Magrathea, based in California, has unveiled a new type of electrolysis device that can extract magnesium from seawater, aiming to achieve a zero-emission production process. Founded in 2022 by Alex Grant, the co-founder of Lilac Solutions, and Jacob Brown, a chemical engineer from Massachusetts, Magrathea has developed an innovative electrochemical technique that addresses both the environmental and industrial needs of magnesium production. Seawater, brine lakes, and underground water sources all contain trace amounts of magnesium (about 1,300 ppm in seawater, equivalent to 0.1% of its total weight). By purifying and concentrating these brines, magnesium salts can be obtained, which can then be processed into metallic magnesium. In 2023, Magrathea secured $10 million in seed funding, led by VoLo Earth and Capricorn Investment Group, with additional participation from OpenAI CEO Sam Altman, Bloomberg New Energy Finance founder Michael Liebreich, and WovenEarth Ventures executive and Cambridge University Professor Jane Woodward, among other industry leaders. This February, the company signed a $28 million partnership agreement with the U.S. Department of Defense to accelerate the commercialization of its technology, ultimately building a full-scale demonstration plant. The core of Magrathea's technology is an electrolysis device that uses electricity to decompose materials into their basic elements. In the magnesium production process, this device operates at a temperature just over 100°C, effectively utilizing the residual heat from the magnesium salt drying process. This approach ensures that the entire production process remains efficient while minimizing energy consumption and carbon emissions. The byproduct, oxygen, can be used to capture atmospheric carbon, further reducing environmental pollution. According to a life cycle assessment completed in January, the technology shows promise in achieving zero emissions. Grant acknowledges that while the initial goals might not be fully met, the current method already demonstrates a significant improvement over existing practices. Over the next few months, Magrathea will use data collected from pilot tests to develop a scalable technology model, optimizing environmental and economic performance. Magrathea plans to build a demonstration plant by the end of 2025 or early 2026 in Pittsburg, California, with an annual production capacity of about 1,000 tons, anticipated to be operational by 2027. In February, the company announced a non-disclosure agreement with a major automobile manufacturer, who has already pre-purchased the demo factory's materials for use in existing product lines. Currently, each vehicle on average uses about 5 kilograms of magnesium, and the company projects that in the near future, this figure could rise to 20-40 kilograms per vehicle. Beyond the automotive industry, Magrathea has entered into letters of intent (LOIs) and memorandums of understanding (MOUs) with buyers in North America, South America, and Europe. These agreements cover primary magnesium producers and smelters, metal recycling operators, ceramic producers, abrasive product distributors, and tire manufacturers. Following the success of the demonstration plant, Magrathea aims to establish a commercial plant with an annual production capacity of 50,000 tons. This ambitious goal, if achieved, could revolutionize the magnesium production sector, making it greener and more cost-effective. The potential for widespread adoption of this technology is immense, given the growing demand for sustainable materials in various industries.