Focus: Chile's lithium nationalization shines light on emerging tech

International Battery Metals

24/04/2023 12:00

(Repeats with no changes)
    By Ernest Scheyder
       SANTIAGO, April 24 (Reuters) - Chilean President Gabriel
Boric's plan to nationalize his country's immense lithium
industry is putting the spotlight on an emerging crop of
filtration technologies aimed at revolutionizing how the metal
is produced for the electric vehicle industry.
    In a national prime time address, Boric said last Thursday a
new state-owned company would work to slash the environmental
impacts of lithium production by shifting away from evaporation
ponds, traditionally used to remove the metal from brine, in
favor of direct lithium extraction (DLE).
    While neighboring Bolivia, as well as General Motors Co
 GM.N , Rio Tinto Ltd  RIO.AX  and other companies, have made
their own DLE bets, Boric's move represents the biggest vote of
confidence to date in the commercially unproven suite of
technologies given plans to deploy it across Chile's vast
lithium reserves, the world's largest. 
    "This is the best chance we have at transitioning to a
sustainable and developed economy," said Boric, a leftist
37-year-old elected in late 2021.
    DLE technologies are designed to extract the metal from
salty brines in Chile's Atacama Desert and elsewhere in the
world using filters, membranes, ceramic beads or other equipment
that can typically be housed in a small warehouse.
    While multiple companies are working to develop competing
versions, the broad promise of DLE is a boost to global lithium
production with a footprint far smaller than open-pit mines and
evaporation ponds often are the size of multiple football fields
and unpopular with local communities. 
    Many DLE technologies use lots of potable water and
electricity. None have yet to work independently at commercial
scale. If Chile could help one or more DLE technology succeed,
it would cement the country's dominant role in the global
lithium and EV industries for decades to come.
    "The devil is in the details, but it's a great opportunity
for technological innovation of brine processing, either way,"
Chris Berry, an independent lithium industry consultant, said of
Boric's plan.
    SQM  SQMA.SN  and Albemarle Corp  ALB.N , Chile's two
existing lithium producers, use evaporation ponds to produce the
metal. Both are studying DLE, though neither have deployed it.
Livent Corp  LTHM.N  uses a variation of DLE technology in
Argentina alongside evaporation ponds. 
    "Now that regulatory bodies are forcing the issue, it's only
going to speed up the innovation and commercialization," said
Teague Egan, CEO of privately held EnergyX, which is building a
DLE test facility in northern Chile and has a development
project with GM.
    The goal for Boric and the DLE industry is to extract
lithium from brine and reinject what is left back underground,
in a closed loop process that does not affect water tables.
    "Boric recognizes you can't just evaporate all the water and
wreck the geological structures," said John Burba, who helped
pioneer one DLE technology in the 1970s and is now CEO of
International Battery Metals Ltd  IBAT.CD , which builds
portable DLE plants.    
    Lake Resources NL  LKE.AX , Vulcan Energy Resources Ltd
 VUL.AX , Renault SA,  RENA.PA  Stellantis NV  STLAM.MI  are
also supporting DLE projects.
    Lake Resources is working with Bill Gates-backed Lilac
Solutions Inc to deploy Lilac's DLE technology in Argentina.
Lilac also plans to install a DLE test facility in Chile in
coming weeks, said CEO Dave Snydacker.
    "DLE is a great way for Chile to expand production in an
environmentally friendly and scalable way," said Snydacker.
    Several prominent short sellers in recent years have alleged
that DLE technologies from Lilac and Standard Lithium Ltd
 SLI.V  do not work, charges the companies have strongly denied.
    In Chile, DLE companies see a business opportunity despite
the nationalization plans given that Boric's new state lithium
company is expected to need technical support.
    "Nationalization or not, they'll require technology," said
Amanda Sanregret of privately held Summit Nanotech Corp, which
earlier this month opened a Santiago office and DLE test
facility.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
FACTBOX-World's biggest lithium producers     urn:newsml:reuters.com:*:nL4N36O0LC
FACTBOX-Lithium key element for electric vehicle ramp up   
 urn:newsml:reuters.com:*:nL8N36O31R
FACTBOX-Chile lithium move latest in global resource nationalism
trend     urn:newsml:reuters.com:*:nL4N36O0U3
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Ernest Scheyder; Editing by Richard Chang)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))