ElectraLith’s Water-Free Lithium Extraction Secures Funding
Despite a challenging global lithium market, Melbourne-based startup ElectraLith, backed by mining giant Rio Tinto, is poised to close a A$27.5 million ($17.8 million) funding round. This news comes as the company prepares to revolutionize lithium extraction with its innovative, water-free technology.
ElectraLith’s approach centers on a filtration process that extracts lithium directly from brine deposits. This technology is particularly significant for arid regions like Chile’s Atacama Desert. It promises to minimize energy consumption compared to traditional methods, which rely on evaporation ponds and open pit mines and can require months or even years.
“The lithium market is not great, venture capital markets aren’t great, [so] the fact we are about to close this round with an oversubscribed investor base…for us that’s fantastic,” said CEO Charlie McGill in a recent interview.
ElectraLith isn’t alone in seeking efficiency. Several companies, including Exxon Mobil, are developing their Direct Lithium Extraction (DLE) technologies. The DLE market is projected to exceed $10 billion in annual revenue within a decade.
ElectraLith’s DLE-R process, for which they hold full commercialization rights, utilizes two membranes to filter brine. This method extracts lithium and converts it into lithium hydroxide. Then, the remaining brine is returned to its source. McGill emphasized ongoing efforts to scale the membrane technology for large projects while preserving its original functionalities.
The raised funds will enable ElectraLith to construct its first pilot plant at Rio Tinto’s Rincon operations in Argentina, with anticipated operation within a year. Two more pilot plants are also planned. The company claims its water- and chemical-free process offers a cost advantage, coming in at roughly half the cost of competitors.
Highlighting the importance of water conservation, McGill stated that water availability is a major concern for lithium mines. “The availability of water in the regions where there are lithium mines is a major problem.” He cited the situation in Utah, where ElectraLith is collaborating with Australia-listed Mandrake Resources. Water scarcity in the area necessitates diverting Colorado River basin water, making water permits for traditional mining practices almost impossible to obtain.
McGill explained, “You can’t get a water permit. So, we show up and we are like, ‘We don’t need water.'”
ElectraLith’s water-free approach has the potential to significantly disrupt the lithium extraction industry. It offers a more environmentally friendly and cost-effective solution for a future increasingly reliant on lithium-based technologies.
