IDTechEx's latest market analysis predicts rapid expansion in direct lithium extraction, with an expected 20% annual growth rate driven by battery manufacturers seeking more efficient mineral processing methods.
The market intelligence firm projects a 19.6% compound annual growth rate for the direct lithium extraction, or DLE, market.
Existing lithium-extraction processes typically involve time-intensive solar evaporation and expensive precipitation and filtration steps. DLE filters lithium from multi-ingredient liquid streams. Companies like Exxon Mobil have announced plans to use the DLE process for lithium-extraction activities because it’s considered to be more energy efficient and environmentally sustainable.
DLE shows promise across various markets and geographic regions. But each comes with unique challenges that producers will need to overcome, IDTechEx notes.
For instance, South America is home the "lithium triangle" where vast deposits of the mineral exist.
SQM, Albemarle and Arcadium Lithium are among the leaders extracting lithium brine from the region along with DLE technology providers, such as Adionics, Summit Nanotech and CleanTech Lithium.
But applying DLE in countries like Chile, Argentina and Bolivia is difficult due to the high altitude. Many areas in these regions lack infrastructure for transporting large equipment and materials, according to IDTechEx.
Another lithium source is geothermal brines, which are naturally hot and rich in minerals and dissolved metals.
Geothermal resources are naturally lower in carbon intensity because processors can use the geothermal energy to power both lithium extraction and refining processes.
The co-production of heat and power as byproducts has the added benefit of diversifying revenue streams, reducing producers’ vulnerability to lithium price fluctuations.
Europe and the United States are key markets for geothermal DLE. The regions tend to be less risky from an investment standpoint and offer supply chain advantages, as well, because they’re located near battery manufacturers.
Still, high brine temperature and complex composition can pose technical hurdles for geothermal extraction.
Key companies currently involved in geothermal projects include Vulcan Energy Resources’ Zero Carbon Lithium project in Upper Rhine Valley, Germany, and Lithium de France’s efforts in Northern Alsace, France.
Traditional oil and gas companies are increasingly turning their attention to lithium extraction in underground petroleum reservoirs.
Significant deposits are present in oilfield brines in regions like Arkansas and East Texas and Alberta, Canada.
The primary advantage here is the ability to use existing oil and gas processes and facilities, which means less time acquiring permits and scaling operations.
Oilfields also provide access to cheaper power sources.
Several oil and gas companies are partnering with lithium technology providers to develop these resources. This includes E3 Lithium’s partnership with Imperial Oil to redevelop historic oil fields in Canada, and Equinor's collaboration with Standard Lithium in the U.S.
The primary disadvantage of oilfields is a lower level of lithium concentrations. Efficiently and economically extracting lithium from these lower-grade sources presents a technical and financial hurdle.
To overcome challenges in the various DLE opportunities, companies are adopting various approaches, including the development of customized technologies and lithium recovery processes designed to optimize lithium extraction and production from different types of brine sources.
Many organizations also are partnering with companies that have complementary expertise to accelerate the development and deployment of DLE technologies, according to IDTechEx.
