California Lithium Developer CTR to Go Public in US$4.7 Billion SPAC Deal

Lithium developer Controlled Thermal Resources (CTR) plans to go public through a US$4.7 billion merger with special purpose acquisition company (SPAC) Plum Acquisition in a deal aimed at accelerating development of a major geothermal and lithium project in California.

The companies said the transaction will allow CTR to advance construction of its flagship Hell’s Kitchen project in California’s Imperial Valley, one of the most prominent geothermal and lithium developments in the US.

Once completed, the combined company is expected to trade on the Nasdaq under the ticker symbol “CTRH.”

SPAC transactions, in which a publicly listed shell company merges with a private firm to take it public, had slowed in recent years but are beginning to regain traction as companies look for alternatives to traditional initial public offerings.

CTR said proceeds from the deal will support the first phase of construction at Hell’s Kitchen.

The initial stage is expected to include lithium carbonate production capacity of up to 25,000 metric tons per year alongside a 50 megawatt geothermal power facility.

At full scale, the broader project is designed to produce up to 650 megawatts of renewable baseload electricity and as much as 100,000 metric tons of lithium carbonate annually.

It will also put out other critical minerals, including potash, zinc, manganese, rubidium and cesium.

The project aims to combine geothermal energy generation with lithium extraction from geothermal brine, positioning it as a dual source of clean power and battery materials.

“Few projects simultaneously address energy security and mineral security at scale. Hell’s Kitchen is structured to deliver clean baseload geothermal power alongside domestically produced strategic critical minerals from a single integrated brine resource,” said Rod Colwell, CEO of CTR. The executive added that the project reflects growing demand for reliable energy and domestically produced critical minerals.

CTR has raised more than US$285 million in private investment for the project to date and has completed a field development plan with Baker Hughes to support its geothermal energy strategy.

The company has also demonstrated its direct lithium extraction process at a pilot facility using geothermal brine.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.