Albemarle DLE Project Targets Higher Lithium Recovery in Chile’s Atacama

Albemarle

Albemarle DLE project plans in Chile could reshape lithium production at the Atacama salt flats by increasing recovery while reducing net brine extraction. The US-based lithium producer has submitted an environmental assessment for a $3.1 billion direct lithium extraction project at its Chilean operations.

The project is designed to add DLE capacity alongside Albemarle’s existing evaporation pond system. The company said the technology could recover nearly twice as much lithium while extracting up to 300 fewer liters per second of brine compared with traditional evaporation methods.

Albemarle DLE project development matters because Chile remains one of the world’s most important lithium supply regions. Any improvement in recovery, water management, and environmental performance could influence future lithium investment across brine-based operations.

Direct Lithium Extraction Could Change Atacama Production Economics

Direct lithium extraction uses chemical processing rather than long evaporation cycles. This can reduce production time from 12-18 months to just days, improving project flexibility and potentially accelerating lithium output.

Albemarle plans to install six DLE processing trains across three modules. These trains will complement the company’s evaporation ponds rather than immediately replace the existing system.

The process will produce lithium-depleted brine, which Albemarle plans to reinject into the salt flats’ reservoirs. Each DLE module would allow reinjection of 100 liters per second of brine, potentially reducing the company’s net extraction rate from 442 liters per second to 142 liters per second once the system reaches full capacity.

Infrastructure Investment Shows Scale of Lithium Transition

The Albemarle DLE project is not only a processing upgrade. The $3.1 billion plan also includes supporting infrastructure such as a power transmission line, a new electric substation, expansion of an existing substation, and adaptations to storage sites and pond systems.

Construction is expected to begin in the second half of 2028. The full buildout may take up to nine years, with modules commissioned and ramped up as they are completed.

The long timeline shows that DLE remains a complex industrial transition, not a simple plug-in technology. However, if successful, Albemarle’s project could strengthen Chile’s lithium competitiveness while responding to environmental pressure over brine extraction in the Atacama.

The Metalnomist Commentary

Albemarle’s DLE plan shows that the next phase of lithium competition will focus on recovery efficiency and environmental performance, not only reserve size. Chile’s challenge will be proving that higher output and lower brine impact can move together at commercial scale.

Argentina Advances Lithium Recovery with YPF-XtraLit DLE Partnership Supporting 2025 Output Surge

XtraLit

Argentina is taking a major step forward in its lithium strategy through the YPF-XtraLit DLE partnership, which aims to modernize brine-based lithium extraction. Y-TEC, a subsidiary of the state-owned energy company YPF, will collaborate with Israeli firm XtraLit to co-develop direct lithium extraction (DLE) technologies specifically suited to Argentina’s salt flat resources.

DLE Technology Promises Water Efficiency and Faster Yields

Unlike traditional evaporation ponds, DLE consumes significantly less water and accelerates lithium recovery, addressing both environmental concerns and production speed. This makes DLE a vital tool for countries like Argentina, which sit at the heart of the lithium triangle and face growing global demand for sustainable battery materials.

YPF and XtraLit Collaborate on Brine-Based Extraction Innovation in the Lithium Triangle

Currently, Argentina has just one operating commercial DLE project, though several others are in pilot phases. However, the nation is rapidly scaling up. The government projects a 75% increase in lithium carbonate equivalent (LCE) output in 2025, reaching 130,800 metric tonnes—one of the largest year-over-year jumps globally.

The Metalnomist Commentary

By embedding advanced DLE methods into its lithium supply chain, Argentina strengthens its position as a future-facing energy minerals hub. The YPF-XtraLit partnership reflects how technological innovation and ESG priorities are converging in the critical minerals sector.

Eramet starts DLE lithium production in Argentina

Eramet

Eramet starts DLE lithium production in Argentina and reports stable unit performance. The Centenario project reached industrial operation in June. Eramet starts DLE lithium production in Argentina to lift near-term LCE output. The company targets 4,000–7,000t in 2025 and 24,000 t/yr at nameplate.

Commissioning progress, volumes, and customers

Eramet starts DLE lithium production in Argentina through its Eramine Sudamerica JV with Tsingshan. The DLE units operated near nominal yield and throughput, the firm said. Centenario produced 710t LCE in the first half after earlier evaporation issues. However, Eramet fixed the brine concentrating equipment and restored normal operations. The company sold 520t of industrial and technical grade LCE. Most sales went to Chinese cathode active materials manufacturers.

2025 guidance and financial context

Eramet expects Centenario to deliver 4,000–7,000t LCE in 2025. The site plans a gradual ramp toward 24,000 t/yr capacity. Meanwhile, Eramine Sudamerica posted a €37mn loss in January–June. As a result, execution discipline and uptime remain critical to hit guidance. Direct lithium extraction and evaporation now run as integrated flowsheets.

The Metalnomist Commentary

Eramet’s milestone validates a second industrial DLE reference in the Lithium Triangle. Consistent brine pre-treatment and evaporation stability will determine the pace to 24kt/y. Watch impurity control and customer qualification, which shape pricing and cash flow through 2025.

Aquatech lithium extraction technology acquisition reshapes North American DLE landscape

Aquatech

Aquatech lithium extraction technology is moving centre-stage after the company acquired Koch Technology Solutions' DLE business. The Aquatech lithium extraction technology acquisition includes core intellectual property and the Lithium Selective Sorption (LSS) platform. As a result, Aquatech lithium extraction technology now anchors a full end-to-end flowsheet for brine-to-battery lithium materials.

Aquatech lithium extraction technology now spans full brine-to-battery flowsheets

Aquatech acquired Koch Technology Solutions’ direct lithium extraction business, including all associated intellectual property. The deal transfers every current LSS-based project, along with licences, agreements and performance guarantees. However, financial terms remain undisclosed, reflecting competitive sensitivity in the emerging DLE space.

The LSS technology targets selective lithium recovery from complex brines, improving yields and reducing impurities. Therefore, Aquatech can integrate front-end extraction with its existing strengths in water treatment and process systems. This combination positions Aquatech lithium extraction technology as a modular platform for new projects worldwide.

Aquatech now markets a full lithium processing flowsheet, from extraction and purification to refining and high-purity products. That end-to-end scope will matter for project developers and financiers seeking single-partner risk allocation. It also supports standardisation of designs across different brine chemistries and regulatory environments.

Smackover Lithium deal showcases commercial scale ambitions

A flagship reference for the LSS platform is Smackover Lithium’s South West Arkansas project. Under the transferred agreement, LSS technology underpins plans to produce 22,500 t/yr of lithium carbonate from 2028. This project gives Aquatech an important commercial-scale showcase in the competitive Smackover brine province.

Meanwhile, the acquisition consolidates scattered DLE know-how into a more integrated offering. Project sponsors increasingly want proven technology partners with delivery track records and bankable guarantees. As developers move from pilots to commercial plants, Aquatech lithium extraction technology will be judged on uptime, recoveries and operating costs.

The deal also underscores the growing convergence between water treatment and mineral processing. DLE projects require complex brine management, reinjection and environmental control. Aquatech’s legacy water and process technology business provides an operational bridge between these domains.

The Metalnomist Commentary

Aquatech’s move shows that DLE is no longer a niche R&D theme but a contested industrial platform. By absorbing KTS’ LSS portfolio, Aquatech becomes a more credible partner for Smackover and other brine developers seeking bankable flowsheets. The next test will be whether early projects can deliver nameplate volumes on time and at competitive unit costs.

Lilac Argentina Pilot Plant Achieves 91% Lithium Recovery Rate

Lilac

Lilac Argentina pilot plant demonstrated exceptional performance with 91% lithium brine recovery using proprietary direct lithium extraction (DLE) technology in Jujuy province. The US-based Lilac Solutions' Lilac Argentina pilot plant success represents a significant breakthrough in sustainable lithium processing, achieving 99.4% overall impurity rejection while removing 99.9% of sodium, the primary contaminant in regional brine deposits.

Direct Lithium Extraction Technology Delivers Superior Performance

Lilac Argentina pilot plant operations showcase advanced DLE capabilities that eliminate traditional evaporation pond requirements. The technology enables faster and more environmentally friendly lithium processing compared to conventional methods that require extensive land use and prolonged evaporation cycles. The pilot facility mirrors future commercial-scale operations at one-third scale, providing reliable performance validation for full-scale deployment.

Meanwhile, the Argentina facility would produce 42 metric tonnes annually of lithium carbonate equivalent (LCE) if operated continuously throughout a full year. This production capacity demonstrates commercial viability while validating technical specifications for larger installations. The successful sodium removal rate addresses a critical challenge in Argentina's lithium-rich but high-impurity brine resources.

Multi-Location Strategy Validates Global Applicability

However, Lilac Solutions operates additional pilot facilities across diverse geographic locations to validate technology performance across varying brine compositions. The company maintains pilot operations in Chile and Utah, producing trial lithium quantities at both sites. This multi-location approach demonstrates DLE technology adaptability to different geological and chemical conditions.

Therefore, the global pilot program provides comprehensive data for commercial scaling while reducing technical risks associated with site-specific challenges. Each location offers unique brine characteristics that test different aspects of the DLE system's capabilities. The diverse testing environments strengthen investor confidence and support technology commercialization across international markets.

Commercial Scaling Opportunities in Lithium Markets

Furthermore, Lilac's successful Argentina demonstration positions the company advantageously within the rapidly expanding lithium market driven by electric vehicle and energy storage demand. Jujuy province hosts significant lithium resources within the broader Lithium Triangle region, creating substantial scaling opportunities for proven DLE technology. The environmental advantages of DLE align with increasingly stringent sustainability requirements from automotive manufacturers.

As a result, the 91% recovery rate achievement establishes new performance benchmarks for direct lithium extraction while addressing environmental concerns associated with traditional processing methods. Lilac's technology offers lithium producers faster project development timelines and reduced environmental footprints compared to evaporation-based alternatives increasingly challenged by water scarcity and environmental regulations.

The Metalnomist Commentary

Lilac's Argentina pilot success demonstrates how advanced direct lithium extraction technologies can overcome traditional processing limitations while meeting growing environmental sustainability requirements in lithium production. The exceptional impurity rejection rates and rapid processing capabilities position DLE as a transformative approach for unlocking previously challenging brine resources, particularly important as the industry scales to meet exponential battery demand growth.

Volt Lithium to Test Direct Lithium Extraction (DLE) Technology in North Dakota’s Bakken Formation

Wellspring Hydro

Volt Lithium, a U.S.-based lithium developer, is set to pioneer the use of Direct Lithium Extraction (DLE) technology in North Dakota’s Bakken formation, an oil-rich region known for its high production of lithium-bearing brines. In partnership with Wellspring Hydro, a wastewater recycler, Volt will deploy an advanced system that directly extracts lithium from oilfield brines, marking a significant step in meeting the growing demand for lithium, particularly in the electric vehicle and energy storage markets.

Collaborative Effort for Lithium Extraction

Volt Lithium’s new initiative aims to utilize the cutting-edge DLE technology to purify, extract, and refine lithium from brines extracted from the Bakken formation. The region is the second-largest source of brine production in the U.S., yielding around 2 million barrels per day (b/d) of lithium-bearing oilfield brine, according to Wellspring. Although the exact lithium concentration in the brine is not disclosed, the project presents an exciting opportunity to tap into this resource using a more sustainable and efficient method compared to traditional mining techniques.

The collaboration between Volt Lithium and Wellspring Hydro will be funded by an initial grant of $500,000, with the potential for up to $2 million in additional funding from the state of North Dakota. Volt plans to begin deploying a field study unit in early 2025 to assess the viability of the technology in the Bakken formation.

Direct Lithium Extraction: A Game Changer for Lithium Mining

Unlike conventional evaporation ponds, which require large amounts of land and water, DLE offers a much more efficient method for extracting lithium. This method is capable of higher recovery rates, as it selectively isolates lithium from brines, reducing the environmental footprint of extraction. However, DLE technology remains more expensive and complex, which has led to its gradual development and deployment. Still, its potential has drawn the interest of major oil companies such as ExxonMobil, which is also exploring the extraction of lithium from brine in the Smackover formation in Arkansas.

Volt’s efforts in North Dakota align with the broader trend of integrating advanced technologies into the lithium mining industry, responding to the growing demand driven by the global shift to renewable energy and the rise of electric vehicle production. The success of DLE could significantly reshape the economic landscape of lithium production, especially in the U.S.

Eramet Begins Lithium Production in Argentina, Expands Global Supply

Eramet

French mining company Eramet has officially commenced lithium carbonate production at its Centenario plant in Argentina, marking a significant milestone in the global lithium supply chain. The project successfully integrates direct lithium extraction (DLE) technology, positioning Eramet as a key player in the lithium industry at a time when demand for battery-grade lithium carbonate continues to surge.

Centenario Lithium Plant: Industrial-Scale DLE Implementation

The Centenario-Ratones salar, located in Argentina, holds an estimated 15 million metric tons (mt) of lithium carbonate equivalent (LCE) in total recoverable mineral resources. With an initial production capacity of 24,000 mt per year, the plant has the potential to scale up to 75,000 mt LCE annually. The integration of direct lithium extraction (DLE) technology at an industrial scale enhances recovery efficiency and places the project within the first quartile of the lithium industry cost curve. This positions Eramet favorably against competitors in terms of production costs and long-term sustainability.

DLE technology, which allows for a more efficient and environmentally friendly lithium extraction process, is gaining traction as the industry seeks alternatives to traditional evaporation pond methods. By implementing DLE, Eramet can accelerate lithium production, reduce water consumption, and improve overall recovery rates.

Eramet Takes Full Control After Buyout of Tsingshan Stake

Eramet strengthened its hold over the Centenario project in October 2024 by acquiring the remaining 49.9% stake from Chinese steelmaker Tsingshan Holding Group for $699 million. This strategic buyout gives Eramet full ownership and operational control over the lithium operation, enabling the company to streamline decision-making and focus on long-term expansion plans.

The buyout signals Eramet’s strong commitment to lithium production, reinforcing its strategic position in the global battery supply chain. As demand for electric vehicle (EV) batteries continues to rise, Eramet's Argentina operation is expected to play a pivotal role in securing lithium supplies for global markets.

Conclusion

Eramet’s launch of lithium carbonate production at Centenario represents a major advancement in the lithium industry, particularly with its industrial-scale adoption of DLE technology. The plant’s scalability to 75,000 mt LCE annually, combined with its low-cost positioning, makes it a significant asset in the global lithium market. By regaining full ownership of the project, Eramet has reinforced its role as a leading supplier of battery-grade lithium, crucial for the future of EVs and energy storage systems.

CleanTech Produces First Batch of DLE Lithium

Lithium developer CleanTech Lithium has successfully delivered its first batch of lithium produced using Direct Lithium Extraction (DLE) technology. This marks a significant milestone for the company, which announced on Monday the completion of the first stage of production at its DLE pilot plant in Chile. The initial production yielded 88 cubic meters of concentrated eluate, equivalent to approximately one metric tonne of lithium carbonate. The material is now en route to the United States for conversion into battery-grade lithium carbonate.

DLE technology is praised for its environmentally friendly approach to lithium extraction, aligning with global and local priorities for sustainable resource management. Chile, a leading producer of high-quality lithium from brines, processes nearly a third of the world's lithium. The country is increasingly focusing on ecological sustainability and greater state involvement in resource management, with DLE technology presenting new opportunities for the lithium industry.

Ganfeng and LAR Argentina lithium project JV targets 150,000 t/yr LCE with DLE

Ganfeng lithium

Ganfeng and LAR Argentina lithium project JV will integrate three brine assets and deploy DLE at scale. The Ganfeng and LAR Argentina lithium project JV consolidates Pozuelos-Pastos Grandes, Pastos Grandes, and Sal de la Puna. As a result, the Ganfeng and LAR Argentina lithium project JV aims to build 150,000 t/yr LCE capacity in three phases.

JV structure, financing, and offtake

Ganfeng will control 67pc of Millennial, with LAR holding 33pc. The JV sits under LAR’s subsidiary, Millennial. Ganfeng will extend up to $130mn in financial assistance over six years. Meanwhile, LAR will supply an additional offtake equal to 6,000 t/yr LCE. That supply comes from LAR’s Phase 1 stake in Cauchari-Olaroz until Millennial ramps.

Technology, timeline signals, and regional significance

The JV will use direct lithium extraction to lift recovery and cut water intensity. However, the partners have not disclosed construction or start dates. Integration reduces duplication and accelerates project permitting. It also deepens Chinese–Western capital alignment in Argentina’s Lithium Triangle. Therefore, downstream buyers gain scale, diversification, and improved ESG narratives.

Millennial combines three brine projects into a single development path. Pozuelos-Pastos Grandes is fully owned by Ganfeng today. Pastos Grandes is 85pc LAR and 15pc Ganfeng. Sal de la Puna is 65pc LAR and 35pc Ganfeng. The new structure simplifies investment decisions for future phases.

Ganfeng’s operating base strengthens the JV’s execution. The company produced 130,253t LCE in 2024 across carbonate, hydroxide, chloride, and metal. It is ramping Cauchari-Olaroz toward 30,000–35,000t this year. That learning curve should de-risk Millennial’s early phases. In turn, battery-grade carbonate supply should scale faster.

The Metalnomist Commentary

Consolidation plus DLE is the right playbook in Argentina. Offtake pre-commitments bridge financing while Cauchari-Olaroz provides near-term cover. Watch for phased EPC awards, brine handling contracts, and pond-to-DLE hybrid designs as leading indicators.

Equinor and Standard Lithium Secure $225 Million for US Lithium Extraction Project

Equinor

Norwegian energy giant Equinor and Canadian firm Standard Lithium have received a $225 million grant from the US Department of Energy (DOE). The grant aims to establish a commercial-scale direct lithium extraction (DLE) facility in Arkansas, a critical step toward enhancing domestic lithium carbonate production.

The facility is part of the companies' joint South West Arkansas (SWA) project. Funds will specifically support constructing a processing plant designed to produce lithium carbonate, a key component in battery manufacturing.

Production Timeline and Capacity

Equinor and Standard Lithium anticipate making a final investment decision on the SWA project by the end of 2025. Once approved, the project's first phase of production is set to begin in 2028. Upon completion, the facility will boast an annual production capacity of 45,000 tonnes of lithium carbonate, significantly boosting the US lithium supply chain for battery production.

Rising Interest in Direct Lithium Extraction (DLE)

Direct lithium extraction has become increasingly attractive due to its environmental and operational advantages over traditional brine evaporation methods. Despite brine reservoirs containing approximately 60% of global lithium reserves, conventional evaporation processes only contribute about 35% of lithium production. DLE technology offers a more efficient and sustainable solution, prompting major industry players like Equinor and Standard Lithium to heavily invest in this emerging method.

In May 2024, Equinor committed up to $160 million for a 45% stake in two of Standard Lithium’s projects, including the SWA initiative. Their collaboration commenced operations at a pilot DLE plant in December 2024, marking a significant milestone toward achieving their ambitious production goals.

Rio Tinto Chosen as Codelco Lithium Partner in Chile's Maricunga

Codelco

Chilean state miner Codelco has selected Rio Tinto as its strategic partner to develop lithium in the high-grade Salar de Maricunga basin. The newly announced joint venture marks a significant milestone for Chile’s lithium roadmap, positioning the Rio Tinto Codelco lithium partnership as a key force in one of the world’s richest brine regions. The agreement grants Rio Tinto a 49.99% stake, with Codelco holding 50.01% and leading the development.

$350 Million Investment Sets Stage for DLE Breakthrough

Under the terms of the deal, Codelco will contribute mining rights and fund feasibility studies, while Rio Tinto will initially invest $350 million in further resource analysis. If the project advances, the Australian miner has committed another $500 million to construct a direct lithium extraction (DLE) plant by the decade’s end. An additional $50 million will be invested if lithium is commercially shipped before 31 December 2030. The Rio Tinto Codelco lithium partnership aims to commercialize Maricunga as Chile’s second lithium-producing salt flat after Salar de Atacama, where Codelco also now holds licenses.

Chile Reinforces Public-Private Lithium Model

This partnership aligns with Chile’s national lithium strategy, which mandates Special Lithium Operating Contracts (CEOLs) under public-private frameworks. Since 2023, all lithium reserves are state-owned, and any development requires government participation and profit-sharing. The Rio Tinto-Codelco project represents one of three concessions awarded recently, following community approval from nearby indigenous groups. The Rio Tinto Codelco lithium partnership also signals growing trust in DLE technology and a potential shift in how Latin American lithium assets are developed.

The Metalnomist Commentary

The Rio Tinto-Codelco lithium alliance reflects a global trend: pairing major miners with national resource holders in strategic battery material projects. With political backing, high-grade resources, and DLE innovation, Maricunga could become South America's next lithium flagship.

IBAT Begins Lithium Production via DLE Plant in Utah

International Battery Metals (IBAT) has commenced commercial-scale lithium production using a separation method touted as a greener alternative crucial for electric vehicle (EV) batteries. The Houston-based company announced on Thursday that it has started operations at its modular plant for direct lithium extraction (DLE), producing lithium chloride from a brine by-product of magnesium production.

The brine feedstock is provided by US Magnesium, following an agreement made in May to position the facility near its operations outside Salt Lake City, Utah. Under the terms of the agreement, IBAT will supply US Magnesium with lithium chloride, which will then be refined into battery-grade lithium carbonate. IBAT will earn royalties from the lithium sales and rental fees for its proprietary equipment.

DLE is promoted as a more cost-effective and environmentally friendly alternative to traditional brine mining methods, which rely on extensive evaporation pools that consume large amounts of water and yield only 20-40 percent lithium recovery on average, raising both ecological and profitability concerns.

IBAT claims its technology can extract over 97 percent of available lithium from brine sources and recycle up to 98 percent of the water used. The portable 5,000 metric tonne per year DLE plant can reach production within 18 months from the start of construction, according to the company.

Chile Advances Direct Lithium Extraction Technology at Altoandinos

Enami

Breakthrough in Lithium Recovery and Sustainability

Chilean state-owned miner Enami has reported promising results from testing direct lithium extraction (DLE) technology at its Altoandinos project, the country’s largest undeveloped lithium deposit. Eight international laboratories participated in the tests, which demonstrated a dramatic reduction in water consumption to 36m³ per metric tonne of lithium carbonate equivalent (LCE) — 55 times less than conventional evaporation pond methods. Lithium recoveries also improved sharply, rising from 42% in traditional processes to an average of 92%.

The DLE method also reduces land use, with a proposed 75,000t per year plant requiring only 10 hectares compared with 1,020 hectares for evaporation ponds. This efficiency addresses one of the key environmental challenges facing Chile’s salt lake ecosystems, which have been under increasing scrutiny from environmental groups and regulators.

Strategic Project Development with Rio Tinto

Enami plans to invest around $3 billion to develop Altoandinos in northern Chile’s Atacama region in partnership with Anglo-Australian mining giant Rio Tinto. The deposit hosts an estimated 15 million tonnes of LCE resources across the Aguilar, La Isla, and Grande salt lakes. Agreements have been secured with six indigenous communities in the region, ensuring local stakeholder involvement in the project’s advancement.

This initiative aligns with Chile’s national lithium strategy, launched in April 2023, which targets increased lithium production while safeguarding fragile salt lake ecosystems. The strategy mandates a transition from evaporation-based extraction to DLE and sets a goal of protecting at least 30% of salt lake environments.

The Metalnomist Commentary

Chile’s successful DLE test results could significantly reshape the global lithium supply chain by lowering environmental impacts while boosting yields. If scaled effectively, Altoandinos could emerge as a model for sustainable lithium production, positioning Chile as a leader in both output and ecological stewardship. The real test will be maintaining these efficiencies at commercial scale while navigating regulatory and community engagement challenges.

EXAR Commits $40 Million to Expand Argentina’s Leading Lithium Plant

EXAR

Joint Venture to Pilot Direct Lithium Extraction at Cauchari-Olaroz for Higher Efficiency and Sustainability

EXAR to Introduce DLE Technology at Cauchari-Olaroz

EXAR, a joint venture formed by Lithium Argentina, Ganfeng Lithium, and Argentina’s state-owned JEMSE, has announced a $40 million expansion at its Cauchari-Olaroz lithium facility. This move will pilot Direct Lithium Extraction (DLE) technology to enhance recovery rates and reduce processing time.

DLE can shorten lithium brine processing from 12 months to just one week. The pilot plant, designed to produce 5,000 tonnes per year, will test the method before full-scale implementation. Although EXAR has not set a construction timeline, the company emphasized its focus on efficiency and sustainability.

Cauchari-Olaroz Leads Argentina’s Lithium Output

In 2024, EXAR became Argentina’s top lithium carbonate producer, delivering 25,400 tonnes. The company forecasts 2025 production to rise between 30,000 and 35,000 tonnes at Cauchari-Olaroz, already the country’s largest lithium operation.

By piloting DLE at this critical facility, EXAR aims to stay ahead in the race to modernize lithium extraction methods. The approach supports Argentina’s broader push to boost domestic processing and minimize environmental impact.

Strategic Partnership Backs Innovation and Growth

The EXAR partnership brings together global expertise and local access. Ganfeng Lithium contributes technical know-how from China, Lithium Argentina offers Swiss-based project oversight, and JEMSE ensures alignment with national development goals.

As demand for battery-grade lithium carbonate surges worldwide, EXAR’s investment could establish Argentina as a leading supplier of sustainably sourced lithium.

EnergyX Targets Argentinian Lithium Assets of Galan Lithium Amid Industry Downturn

US energy technology firm EnergyX has set its sights on acquiring Australian developer Galan Lithium’s assets in Argentina, a strategic move aimed at boosting lithium production despite current market challenges.

EnergyX has proposed a deal valued at $150 million, which includes $50 million in cash and $50 million worth of EnergyX shares, to purchase Galan’s lithium assets located in Salar del Hombre Muerto and Candelas. Additionally, EnergyX plans to inject another $50 million into its wholly-owned subsidiary, which will manage the assets. This funding will be allocated to complete the first commercial phase of lithium production at the Hombre Muerto West (HMW) project. Under the proposed agreement, Galan will receive 10% of gross revenue royalties for ten years following the commencement of commercial production.

The acquisition comes at a crucial time as Galan Lithium recently delayed the first production at its HMW project to the second half of 2025, attributing the delay to the current downturn in lithium prices. The HMW project’s initial phase is expected to produce 5,400 tons per year of lithium carbonate equivalent (LCE), with a long-term goal of reaching 60,000 tons per year in its final phase. The Candelas project is expected to be integrated into this production timeline.

EnergyX plans to leverage its direct lithium extraction (DLE) technology, which is significantly more complex than traditional methods but promises higher efficiency. DLE can potentially increase lithium recovery rates to 70-90%, compared to the traditional methods' 40-60% recovery rate from hard rock mining and solar evaporation. This innovative approach could significantly enhance the value of the Argentinian assets beyond Galan's current projections, which rely on evaporation pond methodologies.

The lithium industry has seen increasing interest in DLE technology from various sectors, including oil and gas companies. Firms like CleanTech Lithium, Equinor, and ExxonMobil are already investing in lithium projects that employ DLE, reflecting a broader industry shift towards more efficient and sustainable extraction methods.

Eramet Argentina Lithium Production Begins with Technical Setbacks but 2025 Target Holds

Eramet

Eramet Argentina lithium production has officially commenced, with the French miner reporting 440 tonnes of lithium carbonate equivalent (LCE) in Q1 2025. Despite a slow start due to technical issues, the company maintains its annual production guidance and remains committed to scaling up output from its pioneering direct lithium extraction (DLE) facility.

Technical Hurdles Delay Ramp-Up at Eramine JV

Eramet, in partnership with China’s Ganfeng Lithium through its Eramine joint venture, faced initial challenges as a key brine concentration unit malfunctioned. As a result, only 40 tonnes of LCE were sold in Q1—just 9% of total quarterly output. However, this was Eramine’s first full quarter of production following its initial LCE batch in December 2024.

The company still expects to produce between 10,000 and 13,000 tonnes of LCE in 2025, roughly half of the plant’s nameplate capacity of 24,000 tonnes per year. Eramet emphasized that recovery from the technical fault is underway and long-term production goals remain unchanged.

Argentina Hosts First Commercial-Scale DLE Operation

Eramet operates the only commercial-scale DLE facility currently active in Argentina, setting a benchmark in Latin America’s lithium sector. While the LCE produced is high purity, it is not yet battery-grade. So far, sales have been limited to a Chinese cathode materials producer—an early customer validating Eramine’s product in a competitive market.

This operational milestone reinforces Argentina’s role as a future lithium hub and Eramet’s ambition to secure a foothold in the global battery materials supply chain.

Broader Portfolio Supports Growth Strategy

Eramet’s total Q1 revenue stood at €742 million ($845 million), flat year-on-year. Lithium, along with nickel, manganese, and mineral sands, contributed over 60% of the company’s revenue. The diversified portfolio provides financial resilience as the lithium operation ramps up and stabilizes.

The Metalnomist Commentary

The Eramet Argentina lithium production launch highlights the promise and challenges of scaling direct lithium extraction at commercial levels. While the start was modest, Eramet’s technology-first approach and global partnerships position it as a strategic player in the evolving lithium landscape.

US Critical Materials Funding Targets Recycling, Refining and DLE Technologies

DOE (the Department of Energy)

US critical materials funding is moving deeper into domestic production and refining after the Department of Energy announced up to $69 million for new technologies and processes. The notice of funding opportunity, announced on 7 April, targets critical materials including rare earth elements.

The funding is designed to help move technologies from bench-scale innovation toward commercial deployment. That focus is important because the US critical materials funding gap is often not resource identification, but the ability to scale processing, refining and recovery technologies into reliable industrial supply.

The programme covers three main areas: recycling from manufacturing and end-of-life scrap, refining of gallium, germanium and silicon, and direct lithium extraction alongside critical material recovery from volcanic-hosted geothermal systems.

Recycling and Refining Move Higher on the US Supply Chain Agenda

The first funding area targets recycling from manufacturing scrap and end-of-life scrap. This could support recovery routes for valuable metals already present in electronics, magnets, batteries, industrial components and advanced manufacturing waste streams.

The second area focuses on refining gallium, germanium and silicon. These materials are strategically important for semiconductors, optics, solar technologies, defense systems, data infrastructure and advanced electronics.

US critical materials funding for these metals reflects growing concern over concentrated supply chains. China dominates several critical material processing routes, making domestic refining capability a central issue for industrial resilience and national security.

DLE and Geothermal Systems Add New Resource Pathways

The third topic area covers direct lithium extraction and exploration of critical materials and rare earth elements from volcanic-hosted geothermal systems. This could open new pathways for lithium and mineral recovery beyond conventional mining.

Direct lithium extraction remains strategically important because it may improve recovery efficiency, reduce land use and shorten production timelines compared with traditional brine evaporation. However, commercial scalability remains the decisive test.

The DOE said the $69 million opportunity is part of several programmes totalling nearly $1 billion. These initiatives aim to advance mining, processing and manufacturing technologies across the critical materials supply chain.

The Metalnomist Commentary

The US critical materials funding programme shows that Washington is now targeting the weakest links between laboratory success and industrial supply. The key test will be whether these grants create commercial refining and recovery capacity, not only promising pilot projects.

Standard Lithium Launches Pilot DLE Plant in Arkansas

Standard Lithium

Standard Lithium, a U.S.-based lithium developer, has officially commenced operations at its pilot direct lithium extraction (DLE) plant in southern Arkansas, targeting lithium recovery from brine within the Smackover Formation. This marks a significant step toward scaling domestic lithium production for the battery supply chain.

The pilot plant, which will operate until late January 2025, aims to produce 1,000 US gallons (USG) of 6% lithium chloride solution. The extracted lithium will be supplied to three lithium carbonate equipment vendors, who will process approximately 30kg of battery-grade lithium carbonate for initial qualification testing with potential offtake partners.

Joint Venture with Equinor to Boost Lithium Development

This pilot facility is part of Standard Lithium's South West Arkansas (SWA) project, which operates as a joint venture with Equinor, the Norwegian state-controlled energy company. The collaboration seeks to expand lithium extraction capabilities using DLE technology, which is regarded as a more sustainable alternative to conventional lithium mining methods.

The move aligns with growing U.S. efforts to secure a domestic lithium supply, reducing reliance on foreign sources and supporting the expansion of the electric vehicle (EV) and energy storage markets.

E3 Lithium battery grade lithium carbonate milestone in Alberta brines

E3 Lithium

E3 Lithium battery grade lithium carbonate production marks a key milestone for Alberta’s emerging lithium industry. The company has produced 99.7pc purity carbonate at its Clearwater Project demonstration facility near Bashaw, confirming its direct lithium extraction (DLE) flowsheet. This first output signals that E3 can convert lithium chloride from the Leduc Reservoir into commercial-grade battery chemicals.

E3’s Phase 1 design targets 12,000 t/yr of lithium carbonate equivalent, with phased expansion to 36,000 t/yr. Meanwhile, measured and indicated LCE resources at Bashaw total 16.2mn t, giving the project multi-decade scale. The early demonstration work therefore de-risks both chemistry and process integration ahead of full financing.

Cost structure positions E3 in the mid-cost global curve

The Clearwater Project carries an initial operating cost estimate of $6,200/t LCE, with capex of $2.5bn. That places E3 Lithium battery grade lithium carbonate in the mid-range of the global cost curve, but with meaningful upside if technology and power costs improve. As a result, investors will focus on power pricing, brine chemistry stability and long-term offtake terms.

Production is scheduled to begin in 2028 or 2029, aligning with the next wave of North American cathode and cell capacity. Therefore the timing could help secure premium contracts from OEMs seeking non-brine imports. The project’s large resource base also supports future debottlenecking beyond the initial 36,000 t/yr.

From brine to battery with strategic partnerships

E3 has already secured $41.9mn in government grants, leaving $25.4mn available, which signals strong policy backing. At the same time, its joint development agreement with Pure Lithium aims to link extraction directly with anode production. That “Brine to Battery” approach could shorten supply chains and reduce conversion losses.

For automakers and cathode producers, E3 Lithium battery grade lithium carbonate offers a new North American brine source. However, commercial success will depend on scale-up risk, impurity control and DLE reliability over years, not months. If E3 executes, Clearwater could become a template for other Western brine projects.

The Metalnomist Commentary

E3 Lithium’s progress moves Canadian brine projects from slides to steel, at a time when IRA-driven demand is still ramping. The combination of DLE, large resources and integrated anode concepts is strategically significant, even if costs remain mid-tier. For supply-chain planners, Clearwater now belongs on the serious watch list for late-decade battery-grade supply.

Canada’s E3 Lithium Secures $4.7M from CMIF to Advance Clearwater Project

E3 Lithium

Federal Funding Supports DLE-Based Lithium Development in Alberta

E3 Lithium, a Canadian lithium exploration and development company, has secured up to $4.7 million in federal support from the Critical Minerals Infrastructure Fund (CMIF) to accelerate its flagship Clearwater Project.

This investment will fund critical infrastructure development aimed at extracting battery-grade lithium hydroxide using Direct Lithium Extraction (DLE) technology.

The Clearwater project, located in Alberta’s Leduc reservoir, is expected to produce 32,250 metric tonnes per year of lithium hydroxide once commercialized. The funding from CMIF will reimburse 50% of eligible costs incurred by E3, with the total capped at $4.7 million.

This milestone marks a strong endorsement of E3’s DLE approach, which offers a cleaner, faster, and more scalable alternative to traditional lithium mining methods.

CMIF Supports Canada’s Critical Mineral Supply Chain Strategy

The CMIF is a cornerstone of Canada’s federal strategy to strengthen domestic supply chains for critical minerals, including lithium, nickel, cobalt, and rare earth elements.

The fund plans to distribute up to $1.5 billion by 2030, backing projects that align with clean energy goals and national electrification efforts.

E3’s project is among the first to receive this support and reflects the growing focus on low-carbon extraction technologies in the North American lithium market.

By tapping into Alberta’s brine reservoirs, the Clearwater Project reduces land disruption while contributing to the secure and sustainable sourcing of EV battery materials.

As global competition for critical minerals intensifies, Canada’s domestic production of high-purity lithium will play a vital role in supplying future battery value chains.