Direct Lithium Extraction: Mining Reshapes Energy Sector

The Direct Lithium Extraction (DLE) market is witnessing a surge in interest from various sectors, notably mining and energy. 

Companies like IDTechEx are eyeing this trend closely, projecting that DLE is set to disrupt traditional brine mining operations. 

In IDTechEx's report, titled "Direct Lithium Extraction 2025-2035: Technologies, Players, Markets and Forecasts," they predict DLE will become the fastest-growing area in the industry, with a compound annual growth rate (CAGR) of 19.6%.

Increasing Interest from Multiple Sectors

Several industries, including mining, oil and gas, water treatment, chemicals, and engineering, are looking into DLE’s potential to contribute to eco-friendly, sustainability goals. 

These sectors are particularly attracted to lithium batteries, which are crucial in achieving renewable energy and transport targets. 

DLE’s technological advancements play a significant role in reshaping lithium production, making it an essential part of the global shift towards green energy

What are Mining Brines?

Brines are concentrated saltwater solutions used to extract valuable resources like minerals and elements.

Various methods are employed to recover metals that dissolve in saline water, such as lithium.

Continental brines remain the most prevalent and heavily tapped source for lithium extraction – Bolivia, Chile, and Argentina make up "The Lithium Triangle," the world’s most lithium-rich area. 

Traditional evaporation-based extraction methods have proven effective within the famous triangle.

Leading producers like SQM, Albemarle, and Arcadium Lithium focus on these continental brines due to their economic allure.

With growing interest in DLE, South American sites are drawing attention from companies like Adionics, Summit Nanotech, and CleanTech Lithium. 

These new players face logistical hurdles, as many brine deposits are located at high altitudes, complicating equipment transport  – the absence of robust infrastructure in some areas further complicates operations.

Geothermal Brines and Oilfield Potential

Geothermal brines, which are naturally hot and rich in minerals, offer dual benefits. These can support lithium extraction and provide power, aligning with low-carbon strategies. 

Several DLE developers aim to produce lithium hydroxide, a more energy-intensive compound compared to the more common lithium carbonate. 

This is crucial for the production of high-nickel layered oxide cathodes used in advanced batteries.

Combining lithium extraction with heat and power generation from geothermal brines diversifies income streams and reduces dependence on fluctuating lithium prices.

In Europe and the US, the proximity of these brine deposits to battery manufacturers stabilises the lithium supply chain and lowers sovereign risks, presenting an attractive investment climate. 

Extracting lithium from geothermal brines isn’t without its challenges, particularly due to the high temperatures and complex chemical makeup of the brines.

Oilfield brines represent another frontier.

Found in underground petroleum reservoirs, these brines provide an opportunity to extract lithium while benefiting from existing infrastructure. 

The key advantage lies in leveraging current processes and facilities, simplifying permit acquisition and reducing the need for new developments, which can expedite projects. 

Companies such as E3 Lithium and Volt Lithium Corp are exploring these possibilities, often using cogeneration plants to cut energy costs.

DLE vs Traditional Extraction Methods

The appeal of DLE lies in its ability to boost efficiency, sustainability, and resource utilisation while reshaping the global lithium supply chain. DLE boasts several key benefits:

• Efficiency and Speed: DLE can extract lithium in around two weeks, achieving a recovery rate of about 90%
• Environmental Impact: It uses less water and has a reduced environmental footprint with lower greenhouse gas emissions
• Cost-Effectiveness: DLE can lower operational costs through simplified processes and reduced environmental remediation expenses
• Product Quality: DLE produces higher-purity lithium compounds with fewer impurities
• Adaptability and Portability: Some DLE technologies offer portable plants that can adapt to various brine sources, including geothermal brines.

However, standard methods of lithium extraction come with several drawbacks:

• Efficiency and Speed: Traditional methods can take up to 18 months, with recovery rates ranging from 40% to 60%
• Environmental Impact: They require high water consumption and pose risks such as land disturbance, pollution, and deforestation
• Cost-Effectiveness: Conventional extraction is costly, requiring extensive processing and significant investment in land and infrastructure
• Product Quality: Additional purification is necessary to reach high-purity standards
• Adaptability and Portability: These methods rely on large, permanent facilities and are less flexible with varying brine type.

Opportunities for Oil and Gas

The oil and gas sector sees potential in applying its geological and processing knowledge to lithium extraction from brines. 

Alignments support the transition to renewable energy while also creating value from existing assets. 

For instance, E3 Lithium has partnered with Imperial Oil to redevelop old oil fields in Canada, and Equinor is collaborating with Standard Lithium in the US. These ventures show how established oil companies are turning their focus towards lithium extraction.

Despite these opportunities, challenges persist.

Lower lithium concentrations in oilfield brines and produced water present technical and financial obstacles to efficient extraction. 

As a result, customised DLE technologies and recovery processes tailored to different brine types are emerging, this movement towards tailored solutions and strategic partnerships highlights the importance of collaboration in scaling up DLE technology.

As the market continues to develop, the significance of these collaborative efforts cannot be understated.

This trend towards tailored solutions and strategic partnerships underscores the sector’s adaptability, highlighting the importance of collaboration in advancing DLE technology to a commercial scale.

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