Chile’s battery metal miner CleanTech Lithium PLC (OTCQX: CTLHF) (AIM: CTL) has completed the initial phase of production at its new direct lithium extraction (DLE) plant in the nation’s north.
The company revealed Monday morning that it has now churned out its first major quantity of lithium concentrate. That is 88 cubic metres of concentrated “eluate,” from the Laguna Verde operation near Copiapó to be precise. For this significant achievement, CleanTech reported a favourable lithium recovery rate of 95 per cent from the site’s brine resource. An overall recovery rate of 88 per cent was achieved.
“It shows we can produce battery-grade lithium with low impurities,” Executive Chairman Steve Kesler said. “Working with our partners on the downstream process, Forward Water and Conductive Energy, we can now demonstrate the entire DLE process from brine to final lithium product.”
This significant amount of eluate will now be shipped in a series of tanks to Conductive Energy’s facilities in Chicago. There, it will be converted into lithium carbonate (LC). CleanTech provided Conductive with a 200-litre sample from the plant two months ago which was successfully converted into LC with 99.75 per cent purity. This demonstrated the feasibility of converting larger quantities like the ones currently in transit.
Operations at the plant commenced in March and an inauguration ceremony was held at the end of May. CleanTech’s Chief Financial Officer, Gordon Stein, gave a presentation about the company’s activities at the DLE UK Summit in Uxbridge last month.
United Kingdom. Photo credit: CleanTech Lithium
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The news brought a substantial stock bump with it, leaving the company with a market capitalization exceeding C$60.5 million.
According to Goldman Sachs, global lithium output would increase by eight per cent if 3/10 of Latin America’s lithium brine projects used DLE.
It can produce the commodity faster and in a more environmentally friendly manner than traditional methods involving evaporation ponds or hard rock mining. It uses much less water and recovers a significantly greater volume of lithium.
In neighbouring Argentina, Eramet S.A. (EPA: ERA) just inaugurated a major DLE plant in the Salta province. First production at the site is planned for November this year. Eramet says it will enable a 45 per cent higher rate of lithium recovery than conventional evaporation methods.
Like Chile, Salta is known for holding vast lithium brine resources. The province’s Hombre Muerto North project, a 1.58 million tonne resource held by Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ), is a prime example.
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