Warren Buffett’s Berkshire Hathaway and Occidental partner to revolutionise lithium production in the US

By Colin Hay - June 28, 2024

The renewables division of Warren Buffett’s Berkshire Hathaway Energy (BHE) has formed a joint venture (JV) with a subsidiary of oil and gas powerhouse Occidental Petroleum to hunt for lithium in the US.

The partnership between Berkshire Hathaway and Occidental subsidiary TerraLithium has the potential to solve two major problems facing the US: finding enough lithium to fuel its clean energy plans and dealing with the wastewater associated with geothermal energy production.

High-purity lithium

The aim of the collaboration is to demonstrate and then deploy TerraLithium’s Direct Lithium Extraction (DLE) and associated technologies to extract and commercially produce high-purity lithium compounds from geothermal brine.

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BHE Renewables operates ten geothermal power plants in California’s Imperial Valley, which process 50,000 gallons of lithium-rich brine per minute to produce 345 megawatts of clean energy.

The JV has commenced a project at BHE Renewables’ Imperial Valley geothermal facility to demonstrate the feasibility of using the DLE technology to produce lithium in an environmentally safe manner.

Significant commitment

“This JV with TerraLithium represents a significant advancement in BHE Renewables’ commitment to pursuing commercial lithium production that is environmentally safe, commercially viable and leads to good outcomes for the Imperial Valley community,” said BHE Renewables’ president and chief executive officer Alicia Knapp.

“We are excited to be working with Occidental on this incredible opportunity to make the Imperial Valley a global leader in lithium production.”

Upon successful demonstration, BHE Renewables plans to build, own and operate commercial lithium production facilities in California’s Imperial Valley.

Additional facilities

The JV also plans to license the technology and develop commercial lithium production facilities outside the Imperial Valley.

“By leveraging Occidental’s expertise in managing and processing brine in our oil and gas and chemicals businesses, combined with BHE Renewable’s deep knowledge in geothermal operations, we are uniquely positioned to advance a more sustainable form of lithium production,” said Occidental’s Richard Jackson.

“We look forward to working with BHE Renewables to demonstrate how DLE technology can produce a critical mineral that society needs to further net zero goals.”

Battery lithium demand

According to the International Renewable Energy Agency, battery lithium demand is projected to increase tenfold in line with battery demand growth between 2020 and 2030.

“Creating a secure, reliable and domestic supply of high-purity lithium products to help meet growing global lithium demand is essential for the energy transition,” said TerraLithium president and general manager Jeff Alvarez.

“The partnership with BHE Renewables will enable the JV to accelerate the development of our direct lithium extraction and associated technologies and advance them toward commercial lithium production.”

Shale gas wastewater

Elsewhere in the US, scientists in Pennsylvania are investigating the potential to extract lithium from wastewater associated with shale gas production.

New analysis based on data from the Pennsylvania Department of Environmental Protection suggests lithium from the wastewater of Marcellus shale gas wells could supply 40% of the country’s demand.

Scientists are confident they can extract lithium from water with greater than 90% efficiency.