Allan Pedersen, Aishwarya Khrine, Mamta Jaswal, Zubera Iqbal, and Rebecca Grant of Woodmac report that direct lithium extraction (DLE) offers a faster, more efficient, and environmentally promising alternative to traditional methods of lithium extraction but faces cost, scalability, and its own environmental hurdles before becoming a major player in the growing lithium market. They write:
In 2020, global lithium demand totalled around 383 kt LCE. By 2024, however, this figure had more than tripled to around 1.2 Mt LCE, largely thanks to the electric vehicle (EV) industry. We expect this trend to continue, with lithium consumption projected to reach about 6 Mt LCE by 2050, driven by the evolving landscape of rechargeable batteries.
The lithium industry will see a supply surplus in the short term. However, in the long term, demand growth will outstrip supply growth, and the market will face a shortfall. Additional supply will be needed to meet demand.
Traditionally, lithium is extracted from mineral and brine sources. However, brine evaporation can take up to 18 months. This makes it a less viable option when it comes to meeting immediate market needs. Exploring new extraction technologies, therefore, is crucial to diversifying sources and reducing market dependence on a few major producers and resource types.
Another disadvantage is the land area needed to create the enormous evaporation ponds. The need for quicker supply to come online and to meet global demand has boosted the rise of direct lithium extraction (DLE) technology. […]
DLE needs to overcome a number of obstacles if it is to flourish at scale, however:
1) Cost competitiveness
2) Scalability
3) Environmental, Social and Governance (ESG) Issues
“Environmentally, DLE can be a water-intensive process, which can lead to the depletion of local water resources. Lithium brine deposits are commonly found in countries with arid conditions, so this would be a big concern. In Argentina, the Salar del Hombres Muerto uses DLE technologies. Overall freshwater consumption is about 200% higher than the largest salt flat in Chile, the Salar de Atacama.”
Read more here.
Also, read America Requires Billions of Gallons of Water to Mine Lithium
