What’s happening? International Battery Metals (IBAT), the Houston-based lithium processing company, has launched its own version of a lithium filtration technology that it claims could result in cheaper and quicker supplies of the metal. The company is using the direct lithium extraction (DLE) technology at a Utah site controlled by magnesium production firm, US Magnesium. IBAT aims to increase production of lithium, which is used in electric vehicle (EV) batteries, to an annual rate of almost 5,000 tonnes within four weeks. IBAT’s DLE method also recycles over 98% of water used, which is significant as conventional lithium extraction is water intensive. (Reuters)

Why does this matter? Analysts anticipate that the DLE sector will develop into an industry with $10bn in annual revenue within a decade. Growth is likely to be driven by increasing the speed and efficiency of lithium production for manufacturers of products including electric vehicles. IBAT has been competing with companies including Eramet, Rio Tinto, SLB and Standard Lithium to become the first to achieve commercial DLE production. According to Bloomberg, if DLE is successfully commercialised, the supply of lithium from DLE technology will be comparable to that from traditional evaporation techniques by the end of this decade.

Market dynamics – IBAT’s expansion plans coincide with a fall in lithium prices, which have declined by more than 80% over the past year. Despite this drop, which has been caused by destocking, reduced EV demand, and increased supply, Bloomberg anticipates that demand for lithium is likely to triple to 3 million tonnes of lithium carbonate equivalent (LCE) by 2030.  

Extraction challenges – Traditionally, lithium has been produced using evaporation ponds, which extract the metal from brines or open-pit mines. Such evaporative technology is slow – it can take up to 18 months to recover lithium – and has a recovery rate of just 40% to 60%. Conventional lithium mining is also water intensive and has been linked to water and air pollution, land degradation and deforestation.

Efficiency gains – DLE uses a number of processes, including adsorption, ion exchange and solvent extraction, that enable fast isolated lithium production into saleable lithium. It aims to extract around 90% or more of the lithium from brines. It also reduces production time, extracting lithium from brine in just two weeks. In addition, it requires less land than traditional evaporative methods, while also being more efficient in its water use.

Low-cost and portable – IBAT’s rivals have tended to base their commercial DLE plans on the use of permanent facilities that are frequently located in remote regions where labour and supplies are scarce. IBAT has departed from this strategy by developing a 137m long portable plant that it moved in 13 sections from Louisiana to the Utah location. This site uses brine from the Great Salt Lake and processes brines from a US Magnesium tailings waste facility. Additional plants can be added to increase production in 5,000-tonne-per-year increments. Each plant, which takes 18 months to construct, can be moved to a new deposit in the future, reducing construction costs. Plants costs $50m to $60m each. This compares to the almost $900m cost of Eramet’s plant in Argentina, which is due to come online this year after over a decade of development.