Convergence of Artificial Intelligence & Battery Metal Exploration
Battery X Discoveries and TerraDX intend to form a dedicated joint venture (the "Battery Metals JV") that will leverage TerraDX's proprietary AI foundation model (the "AI Model") to drive subsurface intelligence and accelerate critical battery metal discoveries in Nevada.
The AI Model is designed to integrate and analyze large, complex geological datasets-often siloed and underutilized-to uncover high-probability mineral targets. This data-driven approach is expected to de-risk early-stage exploration, shorten discovery timelines, and unlock new opportunities for lithium, cobalt, graphite, nickel, and manganese deposits.
The strategic intent is to acquire and explore highly prospective AI-identified mineral claims, using TerraDX's predictive platform to prioritize targets with the strongest potential to deliver meaningful discoveries in support of the clean energy transition.
"This agreement represents a forward-looking step in our 360° strategy to build an integrated battery metals supply chain," said Massimo Bellini Bressi, CEO of Battery X Metals. "Expanding into the U.S. aligns with our long-term vision, and Nevada-given its geological potential and strategic importance-is a natural next frontier for our exploration vertical."
"Our collaboration with Battery X Metals is a compelling opportunity to apply our AI platform in one of the most promising battery metal jurisdictions in the world," said Colby Mintram, CEO of TerraDX. "By harnessing large-scale geoscience data, we aim to identify and accelerate discoveries that might otherwise remain hidden for years."
Over the next quarter, TerraDX will commence training of its proprietary AI model using Nevada-specific geological datasets, with the objective of identifying high-probability mineralization targets. Subject to the availability of sufficient capital resources and the identification of highly prospective claims or projects, the proposed joint venture anticipates proceeding with the staking or acquisition of select properties, with an initial budget estimate of $50,000 to $100,000. This may be followed by fieldwork and early-stage exploration activities, including sampling and geophysical surveys, also budgeted in the range of $50,000 to $100,000. Any decision to undertake a more extensive drilling program will be contingent upon favorable exploration results and will be subject to a separate budget determination at that time.
Nevada's Strategic Role in Advancing U.S. Battery Metal Supply Chain Independence
Nevada is one of the most resource-rich jurisdictions in the United States for critical battery metals, particularly lithium. The state is estimated to hold approximately 85% of the nation's known lithium deposits, largely due to the state's arid environment and closed basin hydrologic systems which have combined over millions of years to deposit vast amounts of the mineral deemed critical to the clean energy movement.1
According to the U.S. Geological Survey (USGS), commercial-scale lithium production in the United States in 2023 came solely from a continental brine operation in Nevada2 - the Silver Peak facility operated by Albemarle Corporation. This made Nevada the sole domestic producer of lithium that year.
Nevada is also home to Thacker Pass, located within the McDermitt Caldera in Humboldt County. It is recognized as thelargest measured lithium reserve and resource in the world.3
In October 2024, General Motors (GM) announced a $625 million investment in the Thacker Pass project, acquiring a 38% equity stake in a joint venture with Lithium Americas. The deal includes $430 million in direct project funding and a $195 million letter of credit facility.4
These resource developments align with federal policy initiatives to secure critical mineral supply chains. The Defense Production Act has been invoked to accelerate domestic lithium production and reduce reliance on foreign sources.5
Additionally, the Infrastructure Investment and Jobs Act (IIJA) allocates funding for critical mineral processing, battery material recovery, and lithium-ion battery recycling in the U.S.6 As the United States prioritizes domestic critical mineral development, Battery X Discoveries aims to leverage Nevada's unique geological potential through its strategic agreement with TerraDX. The partnership aims to deploy propriety artificial intelligence (AI) to identify and explore highly prospective critical battery metal projects including lithium, cobalt, graphite, and other battery metal targets across the state.
With vast lithium occurrences, proven production, and a pro-mining regulatory environment, Nevada offers an unparalleled foundation for AI-driven exploration. This strategic agreement reinforces Battery X Metals' integrated 360° strategy across the battery metals value chain-spanning critical battery metal exploration, battery material recovery technology development in partnership with a globally recognized top 20 university, and patent-pending battery lifespan extension technology-and positions the Company at the forefront of next-generation solutions supporting U.S. clean energy and electrification goals.
Terms of the MOU
Pursuant to the MOU, Battery X Discoveries and TerraDX intend to form the Battery Metals JV focused exclusively on the identification, acquisition, and exploration of lithium, cobalt, graphite, nickel, manganese, and other battery metals within the state of Nevada, USA. The MOU also contemplates the formation of a second, separate joint venture between TerraDX and MineMind, which will focus on the exploration and development of gold, base, and other critical metals in Nevada. Both joint ventures will operate independently, with clearly defined mineral scopes and coordination protocols to avoid operational overlap and ensure efficient project execution.
Under the terms of the binding MOU, the Battery Metals JV will be co-owned on a 50/50 basis by Battery X Discoveries and TerraDX. Battery X Discoveries will serve as the operator, assuming responsibility for all permitting, claim acquisition, exploration activities, and on-the-ground operations. The Battery Metals JV will be exclusively focused on the exploration and potential development of battery metals-specifically lithium, cobalt, graphite, nickel, manganese, and other energy storage-related minerals. It will not have rights to explore or develop gold, base, or critical metals, which fall under a separate joint venture established between TerraDX and MineMind. The Battery Metals JV will operate exclusively within the state of Nevada, unless otherwise mutually agreed upon in writing.
TerraDX will deploy its proprietary machine learning model specifically configured for battery metal exploration. The AI-driven platform will analyze geological, geophysical, and geochemical data to generate mineral prospectivity maps and target areas, which will be made available exclusively to the Battery Metals JV. TerraDX will maintain strict separation between the data, outputs, and AI models used in the Battery Metals JV and those developed for its separate joint venture with MineMind.
The Battery Metals JV will be governed by a Management Committee composed equally of representatives from Battery X Discoveries and TerraDX. Additionally, a three-party Coordination Committee-including Battery X Discoveries, TerraDX, and MineMind-will be established to address inter-JV matters, including potential overlaps or shared discoveries involving both battery and non-battery metals. In the event a mineral discovery contains both battery and non-battery metals in commercially viable quantities, the parties have agreed to a defined protocol: a joint evaluation committee will be formed, an independent economic assessment will be conducted, and the parties will determine whether to (i) create a special-purpose JV, (ii) geographically divide the asset, or (iii) implement a royalty-sharing mechanism based on the relative value contribution of each mineral group.
Battery X Discoveries and TerraDX will equally share all funding and operational costs related to the Battery Metals JV. TerraDX may contribute up to $100,000 in pre-formation development credits and an additional $25,000 per year in annual maintenance credits (beginning in year two) toward its capital obligations, subject to the condition that a minimum cash contribution of $125,000 is made prior to the application of such credits.
In the event a party fails to meet its funding obligations, its interest in the Battery Metals JV may be diluted in accordance with the agreed dilution formula. If a party's interest falls below 10%, it will automatically convert to a 1% Net Smelter Return (NSR) royalty, and the party will forfeit its voting rights and governance role within the Battery Metals JV. Each party will also hold a right of first refusal (ROFR) on any proposed transfer of interest in the Battery Metals JV by the other party, including NSR interests resulting from dilution.
Battery X Discoveries will receive a royalty-free, exclusive license to use TerraDX's proprietary AI platform for the purposes of the Battery Metals JV. TerraDX retains ownership of its core AI technologies, while all exploration data, outputs, and jointly developed mineral targeting derived from the Battery Metals JV will be co-owned by both parties. The MOU is effective for a term of five (5) years and forms the foundation for the negotiation and execution of formal joint venture and intellectual property agreements.
Definitive joint venture agreements and related IP arrangements are expected to follow, aligning with the principles outlined in the MOU.
1 Nevada Independent, 2 USGS Mineral Commodity Summaries 2025 - Lithium, 3 LAC, 4 Reuters - GM Invests $625M in Lithium Americas , 5 U.S. Department of Defense - DPA Awards , 6 U.S. Congressional Research Service - Critical Minerals and IIJA
About Battery X Metals Inc.
Battery X Metals (CSE:BATX)(OTCQB:BATXF)(FSE:R0W, WKN:A40X9W) is an energy transition resource exploration and technology company committed to advancing domestic battery and critical metal resource exploration and developing next-generation proprietary technologies. Taking a diversified, 360° approach to the battery metals industry, the Company focuses on exploration, lifespan extension, and recycling of lithium-ion batteries and battery materials. For more information, visit batteryxmetals.com.
About TerraDX Discoveries Inc.
TerraDX Discoveries Inc. is a technology company specializing in Machine Learning applications for mineral exploration and subsurface intelligence. The company's proprietary AI Models analyze geological, geochemical, and geophysical data to identify high-potential mineral exploration targets with unprecedented accuracy. For more information, visit terradx.ai
On Behalf of the Board of Directors
Massimo Bellini Bressi, Director
For further information, please contact:
Massimo Bellini Bressi
Chief Executive Officer
Email: mbellini@batteryxmetals.com
Tel: (604) 741-0444
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws. These statements relate to the Company's plans, objectives, and expectations with respect to the formation and operation of the Battery Metals JV pursuant to the MOU and the Company's broader business strategy. Specific forward-looking statements in this release include, but are not limited to: the intention of the Company to form a joint venture with TerraDX and the proposed structure, governance, capital contributions, and operational scope of the Battery Metals JV; the anticipated deployment, integration, and performance of TerraDX's proprietary AI technology for the identification of high-potential battery metal targets; the expectation that the AI platform will de-risk early-stage exploration, shorten discovery timelines, and unlock new mineral opportunities; the proposed staking or acquisition of select properties in Nevada and the initial and subsequent exploration budgets and activities, including sampling, geophysics, and potential drilling; the execution of definitive joint venture and intellectual property agreements; the strategic rationale for selecting Nevada as a jurisdiction for AI-driven exploration; the ability of the MOU and JV structure to reinforce the Company's 360° battery metals strategy, including exploration, recycling, and battery lifespan extension; the Company's ability to leverage AI to identify and explore lithium, cobalt, graphite, nickel, manganese, and other battery metals; the anticipated roles and responsibilities of Battery X Metals and TerraDX in the JV, including operator status, permitting, claim acquisition, and exploration activities; the licensing of TerraDX's AI platform for JV purposes; and the future outcomes of inter-JV coordination, data sharing, and intellectual property co-ownership protocols. Forward-looking statements are based on the beliefs, assumptions, and expectations of management at the time they are made. These assumptions include, but are not limited to: the successful negotiation and execution of definitive agreements in accordance with the MOU; the availability, quality, and reliability of relevant geological, geophysical, and geochemical data; the successful integration and real-world performance of TerraDX's AI platform; the ability to acquire prospective mineral claims; the availability of sufficient financing and resources to fund JV activities; the receipt of required regulatory and permitting approvals; and favorable exploration outcomes supporting advancement to drilling or development stages. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated in such statements. These risks include, but are not limited to: failure to negotiate and execute definitive agreements; performance limitations or technical issues related to the AI platform; unanticipated exploration or operational challenges; lack of access to required data or capital; changes in regulatory or permitting regimes; fluctuations in commodity prices; and general market or economic conditions. The Company does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable law. Investors are cautioned not to place undue reliance on forward-looking statements and are encouraged to consult the Company's continuous disclosure filings available on SEDAR+ (www.sedarplus.ca) for further risk factors and information.
SOURCE: Battery X Metals
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