FROM STOCKHEADGeothermal and oilfield brines are ideal for...

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• Geothermal and oilfield brines are ideal for direct lithium extraction tech
• Goldman Sachs says DLE tech is a game-changer for the industry
• O&G giant Exxon is eyeing the tech for an Arkansas oilfield

According to Benchmark Minerals Intelligence, the demand for lithium is forecast to exceed 390kt lithium carbonate equivalent (LCE) in 2025.

It’s expected to grow further to over 900kt LCE in 2030 – compare that with only 10kt of estimated LCE production in 2022.

It’s fair to say the lithium rush is well and truly underway, in the US especially, with the country aggressively supporting the build-out of a domestic battery supply chain and investing millions into the supply chain in an effort to reduce its reliance on China for the battery metals.

Companies in California’s Salton Sea like unlisted player Controlled Thermal Resources plan to produce 60,000 tonnes of lithium from geothermal brines – enough to make roughly 6 million EVs (plus, they already have contracts to supply lithium to General Motors by 2024 and Stellantis by 2025).

The area has been estimated to be capable of producing up to 600,000tpa of lithium carbonate from geothermal fluids (even 40% of the world’s demand according to the California Energy Commission) since lithium rich brine is already being pumped to the surface to power 11 geothermal power plants in the region.

The only difference is they plan to use Direct Lithium Extraction (DLE), to extract the lithium from the brine before reinjecting it underground.

It offers a fairly more sustainable alternative to hard rock mining or evaporation ponds, but the tech doesn’t just have potential in the Salton Sea, it could also be used literally anywhere there’s a oil & gas wells – and there’s a lot of those in America.

No wonder that big names in O&G like ExxonMobil are apparently getting in on the action, joining the hunt for lithium brines in Arkansas with a $100 million+ deal with Galvanic Energy for drilling and production rights for 120,000 acres of the Smackover formation, according to the Wall Street Journal.

DLE tech is the real game-changer

Even Goldman Sachs is waxing lyrical about the potential of DLE, stating in a report last month that the tech has the potential to significantly increase the supply of lithium from brine projects (much like shale did for oil), nearly doubling lithium production on higher recoveries and improving project returns, “though with the added bonus of offering ESG/sustainability benefits, while also widening rather than steepening the lithium cost curve.”

Lloyd agrees, saying it’s not so much the location of the Salton Sea as the DLE technology that’s really changing th

Who has a brine project/DLE tech in the US?

Anson Resources (ASX:ASN)

The company is planning to extract lithium from production wells at the Paradox project in Utah, where it has re-entered historic oil and gas wells to extract lithium rich brines which flow to surface without pumping.

Paradox has a resource of 1Mt lithium carbonate equivalent and 5.27Mt bromine, and a DFS last year projected the production of up to 13,074t of high purity lithium carbonate per annum at an estimated capex of US$495 million, using a proven DLE technology developed with Sunresin New Materials, whose test work has demonstrated lithium recoveries upwards of 91%.

This month the company pegged 586 new claims to increase the project area by 28% to 214km2 of contiguous tenure highly prospective lithium-rich brines.

The plan going forward is to conduct Western Strategy drilling, re-entering the Mineral Canyon and Sunburst wells with the aim of increasing the existing MRE.

The company also has the Green River lithium project in Utah in its portfolio, which has estimated an Exploration Target of 2 billion tons to 2.6 billion tons of brine, grading 100-150ppm lithium and 2,000–3,000ppm bromine.

Anson just signed a letter of intent to acquire private land for the proposed future mineral extraction and processing plant – which includes water, oil, gas and mineral rights.

The plan is to fund the development of this project from future cash flow generated by the Paradox project – which is targeting production in 2025.