Shares in CleanTech Lithium (AIM: CTL) rallied on Monday after the Chile-focused explorer and developer announced it had completed the first phase of production at its Direct Lithium Extraction (DLE) pilot plant in the country’s north, with impressive recovery rates and high-grade lithium production.
CleanTech said that since opening in late March, the plant has operated for 384 hours, completing 14 cycles and producing 88 cubic metres of concentrated liquid solution (eluate). This volume is equivalent to about one tonne of lithium carbonate, the company said.
The DLE adsorbent achieved a lithium recovery rate of 95% from the brine, with a total recovery (including adsorption and desorption) of 88%, CleanTech said.
Impurity rejection rates were also very high, producing a low impurity eluate conducive to the downstream conversion process.
“We are very pleased by these results as it shows we can produce battery-grade lithium with low impurities from our Laguna Verde brine project,” executive chairman Steve Kesler, said in the statement.
“IF 20% TO 40% OF LATIN AMERICA’S BRINE PROJECTS USE DLE, IT COULD INCREASE THE REGION’S LITHIUM OUTPUT BY ABOUT 35% FROM 2028 — OR AN 8% BOOST TO GLOBAL SUPPLY”
— Goldman Sachs
This new way of mining lithium is being presented by a majority of actors involve in the global electric vehicles (EVs) supply chain, as the answer to boosting production while also preserving the environment. Billions of dollars are pouring in to what Goldman Sachs calls “potential game-changing technology,” as its impact is expected to be much like shale’s on the oil industry.
According to the bank, if 20% to 40% of Latin America’s brine projects use DLE, it could increase the region’s lithium output by about 35% from 2028 — or an 8% boost to global supply.
Chile is the world’s top copper producer and the second-largest producer of lithium after Australia. Both metals are considered vital commodities for the global transition from fossil fuels to renewable energies.
The country’s lithium output to date is based on what only two companies produce: Chile’s SQM (NYSE: SQM) and US-based rival Albemarle (NYSE: ALB), which is testing its own use of DLE.
Santiago-based SQM researched over 70 DLE technologies before selecting 12 for pilot testing, with two of these trials already underway.
Global demand for lithium, according to the country’s government projections, will quadruple by 2030, reaching 1.8 million tonnes. Available supply by then is expected to sit at 1.5 million tonnes.
Shares in CleanTech Lithium jumped almost 10% on the news and were trading 8.5% higher in late afternoon in London to 23.04 pence each. This leaves the company with a market capitalization of £34 million ($44m).