New direct lithium extraction technology will help double output to meet demand from EVs innovation, says Cleantech Group

New technology to extract lithium from the world’s most plentiful sources will nearly double output to meet exponential demand from electric vehicles (EVs), with two Canadian companies expected to begin commercial operations in 2025, Cleantech Group said in a report.

Called direct lithium extraction (DLE), it is expected to unlock a majority of the world’s supply located in salt-lake deposits, or brines. DLE has been iterated for years but has now seen technical breakthroughs making it far less energy- and water-intensive. In the past, commercial production remained hobbled by high costs and decades of slow progress.

Today, innovative companies are on faster-than-expected timelines, and are on track for commercial demos next year, with Canada’s Summit Nanotech and E3 Lithium expected to begin production in 2025.

“DLE technology can now transform the lithium landscape,” said Holly Stower, Cleantech Group’s Senior Associate, Resources & Environment. “It will dramatically raise yields and speed up refining time, while simultaneously using less of land, water, and energy, resulting in lower operational costs.”

On capital costs when adjusted for higher yields, DLE is competitive with current evaporitic ponds. While it would require capital expenditures of up to 80% higher due to the cost to set up, it would result in up to 90% higher yields. It would also speed up extraction to mere days, as opposed to several months and years for evaporitic ponds.