Direct Lithium Extraction: A Game-Changer for Mining Brines

The Direct Lithium Extraction (DLE) market is experiencing a surge in attention from a wide range of industries. One company interested in the upsurge of this is IDTechEx.

IDTechEx’s report “Direct Lithium Extraction 2025-2035: Technologies, Players, Markets and Forecasts” suggests DLE will disrupt the brine mining market and become the fastest-growing sector in the industry, with a compound annual growth rate (CAGR) of 19.6%.

Industries such as: mining, oil and gas, water treatment, chemicals, and engineering are showing interest in using lithium batteries to meet sustainability targets. 

The use of DLE to explore technological potential to remould lithium production is a crucial component in the global movement towards renewable energy and electric transportation. 

What are mining brines?

Mining brines are concentrated salt solutions that extract valuable resources such as minerals and elements. 

Multiple methods play a crucial role in obtaining metals that naturally dissolve in saline water, like lithium.

Bolivia, Chile, and Argentina form “The lithium triangle.” Unsurprisingly, this is the most lithium-rich place and is proven effective in traditional evaporation-based extraction methods.

Continental brines are the most used and exploited source of lithium. Leading lithium producers like SQM, Albemarle, and Arcadium Lithium are extracting lithium from continental brines due to the economic attraction associated with this mineral. 

Inevitably, South American mines are gaining interest from DLE players such as Adionics, Summit Nanotech, and CleanTech Lithium; however, this won't be simple.

Many deposits are located at high altitudes, creating complex logistics for transporting large equipment and materials. The lack of pre-existing infrastructure in some areas further difficulties with operations.

Geothermal brines are naturally hot and rich in minerals and dissolved metals. They can power lithium extraction and refining processes, integrating low-carbon operations.

Multiple DLE players intend to produce lithium hydroxide, which is a more energy-intensive product than the original lithium carbonate, which is used for the synthesis of high nickel layered oxide cathodes.

Co-producing heat and power from geothermal brine diversifies revenue and mitigates vulnerability to lithium price fluctuations.

In regions like Europe and the U.S., proximity to battery manufacturers localises the lithium supply chain and lowers sovereign risk, creating a stable investment environment.

However, challenges such as high brine temperatures and complex compositions pose technical hurdles for geothermal lithium extraction.

Oilfield brines discovered in underground petroleum reservoirs suggest another promising frontier in lithium extraction.

Along with the production of water from oil and gas operations, this method offers unique advantages. 

The main positives include utilising existing processes and facilities, streamlining permit acquisition, and reducing the need for new asset development, which can potentially accelerate project development.

Oilfields usually provide access to cheaper power sources, especially companies like E3 Lithium and Volt Lithium Corp which incorporate cogeneration plants to reduce energy costs further.

DLE vs standard methods

DLE is becoming increasingly appealing due to its ability to enhance the efficiency and sustainability of lithium extraction while unlocking new resources and reshaping the global lithium supply chain. 

Advantages of Direct Lithium Extraction (DLE):

• Efficiency and Speed: Extracts lithium much faster (within two weeks) with a high recovery rate of around 90%
• Environmental Impact: Reduced water consumption, minimised environmental footprint with lower greenhouse gas emissions
• Cost-Effectiveness: Potentially lower operational – simplified processes and lower environmental remediation costs
• Product Quality: Produces high-purity lithium compounds with fewer impurities
• Adaptability and Portability: Some technologies offer adaptable plants to various brine sources, including geothermal brines.

Disadvantages of Standard Methods:

• Efficiency and Speed: Slow extraction process, up to 18 months with lower recovery rates (40% to 60%)
• Environmental Impact: High water consumption, significant land disturbance and risks of pollution, deforestation and land degradation
• Cost-Effectiveness: High operational costs, extensive processing and significant investments in land and infrastructure
• Product Quality: Additional purification steps are required to achieve high-purity lithium.
• Adaptability and Portability: Requires large-scale, permanent facilities and is less flexible with brine sources.

The future of oil and gas

Two factors drive the oil and gas sector's entry into lithium extraction:

- The opportunity to leverage their geology and processing expertise in lithium extraction from brines, supporting the renewable energy transition.

- The potential to derive value from by-products and existing infrastructure.

This approach reshapes resource value, especially for produced water, by creating new revenue streams and promoting responsible water management. 

Primary partnerships, like E3 Lithium's partnership with Imperial Oil to redevelop historic oil fields in Canada and Equinor’s collaboration with Standard Lithium in the USA, illustrate this trend.

However, challenges persist, lower lithium concentrations in oilfield brine and produced water make efficient and economical extraction a technical and financial challenge.

Diverse approaches to the DLE market are driving the development of customised technologies and recovery processes, optimised for various brine resources. This trend towards tailored solutions and strategic partnerships underscores the sector’s adaptability and highlighting the importance of collaboration in advancing DLE technology to a commercial scale.

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