ElectraLith, a lithium technology startup supported by Rio Tinto, is poised to finalize a funding round of A$27.5 million ($17.8 million) within the next week, despite challenges in the global lithium market. The company, based in Melbourne, is pioneering a filtration technology designed to extract lithium from brine deposits without the use of water or chemicals, which is particularly advantageous in arid regions like Chile’s Atacama Desert.
Key Highlights:
Funding Success: CEO Charlie McGill noted that the funding round is oversubscribed, highlighting investor confidence in the technology despite a difficult venture capital landscape and a struggling lithium market.
Direct Lithium Extraction (DLE): ElectraLith is focused on developing its DLE-R process, which filters brine through two membranes to extract lithium and convert it into lithium hydroxide. The remaining brine is reinjected into the aquifer, minimizing environmental impact.
Market Potential: The direct lithium extraction industry is projected to exceed $10 billion in annual revenue within the next decade, with various companies, including Exxon Mobil, competing to commercialize their own DLE technologies.
Cost Competitiveness: By eliminating the need for water and chemicals, ElectraLith claims it can produce lithium hydroxide at approximately half the cost of traditional methods, which often rely on large evaporation ponds and open pit mining.
Pilot Plant Plans: The funds raised will be used to construct the company’s first pilot plant at Rio Tinto’s Rincon operations in Argentina, expected to be operational within a year. Two additional pilot plants are also planned.
Ownership and Development: ElectraLith is backed by venture capital firm IP Group, Rio Tinto, and Monash University, where its innovative membrane technology was developed under Professor Huanting Wang.
Water Scarcity Issues: McGill emphasized the challenges of water availability in lithium-rich regions, citing examples such as Utah, where water permits are difficult to obtain. ElectraLith’s technology offers a solution by operating without the need for water.