International Battery Metals Ltd. plans to soon pull lithium from brines at US Magnesium LLC's Salt Lake City operations using a modular plant design for direct lithium extraction. The company says the plant will be the first commercial direct lithium extraction plant in North America, indicating the long-awaited technology is finally taking off.

As technology such as electric vehicles increases demand for lithium and other battery metals, the US aims to build up a domestic supply chain and reduce its heavy dependence on imports. Direct lithium extraction (DLE) offers a way to reduce costs while having a far lower environmental impact than conventional evaporation ponds. In April, Standard Lithium Ltd. commissioned a commercial-scale DLE column at a demonstration plant in Arkansas.

IBAT's patented modular DLE plant design will produce a lithium chloride product from brines produced by US Magnesium's waste magnesium salts, according to a May 6 announcement of a deal between the two companies. The lithium chloride product will be used by US Magnesium to produce lithium carbonate.

"With respect to the US and the amount of lithium here, some of these formations are absolutely stunning. I mean, absolutely stunning. Over the years, I've looked at probably 40 different brines from different formations around the world," John Burba, chair, founder and chief technology officer of IBAT, said in an interview with S&P Global Commodity Insights. "I think the US has got it. I think we have a huge, huge advantage and for a number of different reasons."

The DLE plant at US Magnesium's existing operations is expected to be fully commissioned within three months, with commercial lithium production to follow shortly after, IBAT said. The deal between IBAT and US Magnesium, the largest producer of primary magnesium in North America, includes payments for equipment operation based on performance and lithium prices, as well as royalties on US Magnesium's lithium sales.

IBAT's modular plant was constructed in Lake Charles, La., before it was transported to US Magnesium's site in Utah. IBAT said engineering reviews indicate the plant can produce up to 5,000 metric tons of lithium chloride per year, and that the plant's design allows for expansion.

"These modules can be shipped by truck, rail, barge or a ship," Burba said. "We can send them anywhere we need to. The other aspect is we can build one of these plants at a fraction of the time of a conventional plant."

Burba said IBAT can build a modular plant in about 12 months, and that the Utah plant cost about $25 million to $30 million.

"Our costs are going to be reduced [for future plants] simply because we learn every time we do something," Burba said. "We're continuing to improve key aspects of this plant. So, I think that we're going to see the cost decrease."

IBAT claims its modular plant, which can operate within a 3-acre site, can extract more than 97% of the available lithium from a brine. The plant can also be used in a closed-loop system that returns water to its source after lithium extraction.

Standard Lithium's demonstration DLE plant near El Dorado, Ark., extracts lithium from brine in the Smackover Formation. The company incorporated a DLE component into its existing demonstration plant, announcing April 24 that the DLE plant had completed commissioning.

"Our demonstration plant is the first example in North America of DLE technology being deployed successfully using commercial-scale equipment," Standard Lithium President and COO Andy Robinson said in a statement. "Validation of performance and successful operation of this column is a significant de-risking step on our way to becoming the next major sustainable lithium producer in North America."

Standard Lithium also is developing plans for a commercial lithium extraction plant in Arkansas and expects to make a final investment decision this year. If it decides to move ahead, construction would start this year, with commercial production targeted for 2026, according to the company's website.

Brine and oil, together

IBAT said its technology can work with a variety of brine feedstocks. While EVs may be viewed as a direct threat to oil producers, Daniel Layton, group chairman, CEO and founder of Ensorcia Group, told Commodity Insights there is an opportunity to create a symbiotic relationship between the oil and lithium industries. For example, IBAT reported that a large-volume test with Galvanic Energy LLC showed promise for extracting lithium from oilfield brines. Ensorcia Group is a lead investor in IBAT that also holds lithium resources in South America.

"I wish they didn't call it the energy transition," Layton said. "I wish they would call it the energy addition or another term because it's going to work in conjunction with hydrocarbons for years," Layton said. "You're going to breathe new life into these oil fields."

IBAT said its technology has also been demonstrated to be effective with subterranean brine resources from Alberta, Saskatchewan, Michigan, Ohio, Oklahoma, California, Texas, Chile, Argentina and Germany, as well as geothermal brines. In addition to working with companies with oilfield brines, IBAT said it is also working with companies interested in extracting lithium from brine aquifers and industrial customers with brine byproducts, to tap into new lithium resources around the world.

An underinvestment in domestic mineral supplies presents a major challenge to tackling the world's goals to mitigate the worst impacts of climate change, Layton said.

"You have all these multibillion-dollar gigaplants [to produce EV batteries] ... and there's no raw materials to supply it. There has not been capital for the development of downstream resources," Layton said. "If it doesn't come pouring in, in the next 12 to 24 months, you're really going to set this [energy transition] thing back a number of years."