The team of oil and gas industry experts at Volt Lithium (TSXV: VLT) has introduced a new lithium extraction technology achieving 90% recovery rates from brines with lithium concentrations as low as 34 mg per litre.
The Volt team, led by CEO Alex Wylie, has successfully harnessed its expertise in fluid movement to tackle lithium extraction from brine reservoirs, he tells The Northern Miner in an interview.
“Our pilot plant has given us the data required to prove we can produce lithium consistently from low-grade brines. It potentially opens significant commercial potential with existing oil and gas majors, particularly in North America’s Permian and Montney basins,” Wylie says.
The innovative extraction idea developed from a partnership between two industry experts who had previously worked together for over 15 years. Wylie had a background in the oil and gas sector, while the other came from a family-owned chemicals business in Calgary. Intrigued by the potential of lithium, they embarked on a quest to determine its extractability.
While conventional wisdom dictated that lithium extraction was only feasible from high-concentration brines, the team discovered a company called Standard that achieved successful extraction from concentrations as low as 300 mg per litre. This revelation further led them to explore the possibilities, particularly in regions like Chile and Argentina, where brines boasted exceptionally high lithium concentrations.
The team’s primary objective was to create an effective lithium extraction company capable of extracting lithium from brines across the concentration spectrum. Leveraging their fluid movement expertise gained from the oil and gas industry, they developed a technology that demonstrated high extraction rates during testing at its Rainbow Lake lithium property in northwestern Alberta.
Using Volt’s proprietary direct lithium extraction (DLE) technology, the company reported in late May that the pilot project achieved 90% lithium recoveries at concentrations as low as 34 mg per litre. Wylie also says the company has simulated operating conditions at concentrations of 120 mg per litre and recovered up to 97% lithium. Assuming average annual production of 20,000 tonnes of lithium hydroxide monohydrate, operating costs would be under $4,000 per tonne.
Volt’s DLE approach involves a two-stage process. The first focuses on removing contaminants from the brine before extraction. By partnering with a water treatment and filtration systems sub-contractor, the team ensured efficient brine treatment, facilitating the subsequent extraction process.
But in the second stage, the breakthrough in their technology came with the development of specialized ion exchange beads.
“Unlike traditional beads, their innovative creation boasted a size of five microns and an impressive 800 times the surface area of other industry standard beads, enhancing their extraction efficiency,” Wylie explains.
This advancement allowed the team to consistently extract lithium from brines during various testing stages, including successful pilot projects.
Notably, the team scaled up their process from a modest five litres at a time in the laboratory to an astounding 2,000 litres during the bench testing phase. Encouraged by these results, they transitioned to pilot production, processing 18,000 barrels of fluid daily. According to Wylie, their system showcased consistent extraction results, solidifying their confidence in its scalability.
Looking ahead, the team has set their sights on commercial production. The team believes its experience in fluid movement offers it a significant advantage in pursuing the first-stage goal of processing 60,000 barrels of fluid per day. This milestone would enable the production of 1,000 to 1,500 tonnes per year of lithium hydroxide, translating into substantial revenue potential.
The team’s success in piloting its technology validates its extraction capabilities and opens new possibilities for lithium extraction from brines with lower concentrations. Volt aims to demonstrate the commercial viability of its system, paving the way for collaborations with oil companies operating in regions like the Permian Basin and Montney, which hold significant known lithium resources.
The team has opted to focus on pilot projects before traditional mining assessments. Wylie says this unconventional approach allows them to leverage actual pilot results to design and optimize future operations. Down the line towards commercialization, Wylie envisions expanding Volt’s operations and unlocking the vast potential of lithium extraction in North America and beyond.
With their game-changing technology, these oil and gas experts have positioned themselves at the forefront of the emerging lithium extraction industry, with a view on achieving commercial-scale operations sometime in 2024. Their innovative approach, rooted in fluid movement expertise, promises to unlock a new frontier in sustainable and localized lithium production.
Despite having come off its recent highs at C55¢ per share and being down more than 10% on Wednesday at C26¢ apiece in Toronto, company shares are still up 100% over the 12-months. It has a market capitalization of C$26 million. ($19.8m)
