Lilac Traxys lithium offtake secures 5,000 t/y Utah lithium carbonate

Lilac Solutions

Lilac Traxys lithium offtake locks in Phase 1 output from Lilac’s Utah project. The Lilac Traxys lithium offtake covers 5,000 tonnes per year for 10 years. As a result, Lilac Traxys lithium offtake provides early revenue certainty ahead of first production.

Lilac Solutions and Traxys North America signed a binding agreement for battery-grade lithium carbonate. Traxys will purchase 100% of Lilac’s Phase 1 capacity. Meanwhile, pricing will track market indices, aligning contract value with lithium market cycles.

Why the agreement matters for US lithium supply chains

The deal anchors a domestic lithium carbonate stream starting in 2027. That timing matters as North American battery supply chains seek secure, localised inputs. Therefore, the offtake can support project finance and accelerate execution discipline.

The project targets 5,000 t/yr in the initial phase at the Great Salt Lake facility. Lilac plans a later expansion that lifts total capacity to 20,000 t/yr. However, the larger buildout will depend on permitting, capital, and customer pull.

Direct lithium extraction becomes a commercial test case

Lilac will deploy ion-exchange direct lithium extraction for ultra-low-grade brines. The company reported 87% lithium recovery during 2025 pilot operations. As a result, the Utah site positions DLE as a scalable alternative to slower evaporation routes.

Permitting remains the near-term gate. Lilac is working with state regulators to finalise construction and operating approvals. Meanwhile, US customers will watch product qualification closely, because battery-grade consistency drives long-term offtake value.

The Metalnomist Commentary

This contract signals that buyers now pay for execution certainty, not just resource scale. However, DLE credibility will hinge on consistent recovery rates and stable operating costs. If Lilac delivers on schedule, more index-linked offtakes will follow.

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.

Chile’s La Isla Lithium Deposit Set to Become Major Project, Enami Reports

Enami

Chile’s La Isla salt flat, located in the northern Atacama region, is on track to become the country’s third-largest lithium project, according to the national mining company Enami. Recent exploration drilling at La Isla returned promising results, with lithium concentrations averaging 921 milligrams per liter (mg/l) and reaching a maximum of 979 mg/l over a depth of 252 meters.

Chile holds the world’s largest lithium reserves, accounting for 36-40% of the global total. Most of these reserves are concentrated in the Atacama salt flat in the Antofagasta region, which has positioned Chile as a major player in the global lithium market. In 2023, the state copper company Codelco reported even higher lithium concentrations at the nearby Maricunga salt flat, where they averaged over 1,000 mg/l after drilling 10 holes.

La Isla: Part of the Altoandinos Lithium Project

La Isla is part of Enami’s broader Altoandinos lithium project, which also includes the Aguilar and Grande salt flats in the same region. Earlier exploration at Aguilar returned lower average lithium concentrations of 740 mg/l, with a maximum of 984 mg/l.

In an effort to enhance lithium extraction methods while minimizing environmental impact, Enami has partnered with eight international laboratories to test direct lithium extraction (DLE) technologies. Among the participating companies are France’s Adionics and Eramet, U.S.-based Lilac Solutions and SLB, China’s CADL-Lanshen, Australia’s Rio Tinto, Canada’s Nanotech, and the UK’s WaterCycle Technologies.

Additionally, Enami is negotiating with six companies to select a partner for the operation and financing of the Altoandinos project, with a decision expected by March 2025. Chile, currently the world’s second-largest lithium producer, continues to rely on output from the Atacama salt flat, and the development of La Isla will further solidify its position as a key global supplier of this essential metal.