Unlike traditional evaporation ponds, which can take over a year and consume vast amounts of water, DLE uses chemical or mechanical processes to extract lithium directly from brine. It reduces land use and water consumption and can be deployed in arid regions where water is a critical resource.
Although touted as an industry changer, the method has yet to be proven and has not been commercially used in Chile.
"The ability to deliver at scale, efficiently and reliably will be a decisive factor in the project’s competitiveness and investor confidence," Nicole Porcile, a partner at mining consultancy Anagea, said, according to Reuters.
Canadian innovator Volt Lithium has been among the industry pioneers, exploring DLE in the oil production hotspot—the Permian Basin. Its founder and CEO, Alex Wylie, told Benzinga last year about the steep learning curve in DLE development.
"One of the things we do is fail a lot. We build a pilot plant, we fail all the time, and there’s nothing like failing to succeed. Each failure allows us to change a step and improve,” he said.
It took multiple generations of extraction technology to produce battery-grade metal, which Wylie said costs them around $2,900 per ton. Volt continues testing in the Permian, pushing for efficient, scalable lithium production. Yet, its production price, which is far below the current market price of $8750 per ton (incomparable to the peak price of $79,600 per ton), shows the DLE's potential.
Rio Tinto’s DLE pilot at the Rincon project in Argentina gave it a competitive edge during Codelco's partner selection process. Still, scaling that technology to Chile's unique geological and environmental conditions poses challenges. "That’s certainly the goal: to develop and operate this in the most environmentally friendly manner possible," Porcile said.
Chilean President Gabriel Boric has supported DLE as a requirement for new lithium ventures, although he later softened the stance to allow traditional extraction in select projects. Nevertheless, the political push aligns with environmental and market pressures to innovate and secure cheaper and cleaner sources of this essential green energy transition metal.
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