Source: IEA

According to the International Energy Agency, the total lithium demand will reach more than 1100 ktons by 2040 in the sustainable development scenario - in comparison to the actual demand of 70+ ktons. It is estimated that the main consumers of lithium resources will be EVs and storage solutions (click here to check Darcy’s coverage in these topics).

We take for granted that lithium supply will meet demand, but for that, the rates of production need to improve and advance from conventional systems (evaporation ponds/mineral ores) to new, currently under development technologies. The objective of this article is to understand the processes that allow for lithium obtention, via Direct Lithium Extraction (DLE).

WHAT IS DLE?

Lithium is a highly reactive alkali metal that offers excellent heat and electrical conductivity, which makes it ideal for several uses such as EV and energy storage, as mentioned above. However, because of its high reactivity, pure elemental lithium is not found in nature but is instead present as a constituent of salts or other compounds.

Direct Lithium Extraction (DLE) is one of the latest trends to extract lithium. This technique consists of several chemical processes that allow for fast isolated lithium production into saleable forms of lithium. This can be done via three main methods:

• Adsorption: using sorbents to physically adhere to the lithium for selective removal. After the sorbent is loaded with the lithium chloride, it’s washed with a diluted lithium chloride stream to remove unwanted ions, and then washed a second time to unload the lithium chloride. The latest sorbent being tested is a lithium aluminum layered double hydroxide chloride sorbent, or LDH. As described in a recent study published by Environmental Science & Technology, this method doesn't require an acid wash or other chemicals, which ultimately makes it more friendly.
• Ion Exchange: These systems separate ionic contaminants from solution through a physicochemical process where undesirable ions are replaced by other ions of the same electrical charge. Lithium recovery by ion exchange can change with a simple adjustment in pH, temperature, or stream composition (and the same goes for other lithium extraction methods), but researchers also believe this method can recover roughly 90% of the lithium present.
• Solvent extraction: this process involves capturing lithium either chemically or physically and transforming it into LiCl or Li* from brine.

In the following (clickable) framework, the Darcy team gathered a list of companies in this space:

DLE VS. CONVENTIONAL SYSTEMS

DLE was newly developed to try to reduce the disadvantages of conventional lithium obtention processes. Commercial lithium is currently obtained from two major sources: underground brine deposits and mineral ore deposits. The former can be obtained by extracting lithium from brine reservoirs located beneath salt flats, also known as salars, most of which are in South America (Bolivia, Chile, and Argentina). On the other hand, the process for recovering lithium from mineral ore can vary based on the specific mineral deposit in question. In general, the process entails removing the mineral material from the earth then heating and pulverizing it. This is the technology used in Australia, the biggest lithium production to date.

There are several points in which these methods can be compared to DLE. The following table shows a summary of some of them:

As it can be seen, DLE has several advantages in comparison to the conventional methods, mainly regarding its environmental impact. DLE requires a small land footprint (no need for evaporation ponds → more favorable ESG profile), it is not weather dependent, and has low freshwater consumption while producing lithium at the fastest speeds and with high recovery rates.

SOME FACTS ON DLE

A great additional benefit to DLE is that this type of production is less location constrained and can be produced in locations worldwide that have geothermal brine with lithium contents in it. All in all, this solution becomes quite attractive to supply the lithium demand.

However, there are certain limitations to this new technology. Firstly, it has not yet been tested at a large scale and over a long period of time, which increases the uncertainty of economics and effectiveness. Secondly, given the lack of testing, it may prove to be a more expensive way to extract lithium than conventional evaporation (although for now it appears that the lower grade lithium projects are those that are really embracing DLE). Finally, it has some macro risks associated with it, such as a sudden decrease of EV sales or lower lithium prices.

At Darcy, we're really interested to hear your comments on the topic: questions, thoughts, feedback, related technologies, emerging vendors, partnerships, etc.

Would you like to see more coverage on the lithium production side?

Thanks for reading!

Sources:

• FastMarkets: Lithium Supply and Demand to 2030
• McKinsey: Lithium Mining - How New Production Technologies Could Fuel the Global EV Revolution
• SAMCO: Understanding the Basics of Lithium Extraction
• Science Direct: Energy, GHG, and water LCA of lithium carbonate and lithium hydroxide monohydrate from brine and ore resources