Goldman Sachs isbullish on the potential of DLE compared to traditional pond extraction, stating in a report that it “may significantly increase the supply of lithium” (much like shale did for oil), nearly doubling lithium production on higher recoveries and improving project returns.
Across US states such as Arkansas, Nevada, California, Utah and the Saskatchewan province in Canada, North American lithium brine operations are developing quickly and could possibly become some of the most economical producers of the battery material in the world.
Direct lithium extraction (DLE) technology is advancing at pace, with multiple innovative techniques emerging to extract lithium from salty brines yielding promising results – making projects extremely attractive for explorers and investors.
Yet it’s the adoption of DLE tech that the resources sector is really getting excited about – some calling it “Shale 2.0”.
ExxonMobil’s recent entrance into the region, marked by a +US$100m acquisition of 120,000 acres of private leases from lease-holder Galvanic Energy.This, coupled with an agreement with Tetra Technologies to develop more than 6,100 lithium-rich acres in Arkansas, marks one of the first forays by an oil and gas major into the sector.
“The oil and gas industry are eyeing up lithium with the implementation of DLE tech,” AZL MD Paul Lloyd said.“There are so many similarities to the O&G business that it is no surprise that large household names such as Exxon are getting involved in Li and DLE.”Then there’s Standard Lithium, expanding its stake in the region by signing a JV with a Koch Industries subsidiary to expand on its industrial-scale lithium extraction demonstration plant and 3.1Mt Lanxess project.
Meanwhile, US industrial behemoth Albemarle is building a facility in Smackover territory to test its own DLE technology for what it hopes will eventually filter lithium from existing bromine operations.
