An alternative to traditional lithium extraction can help meet escalating demand for lithium in the transition to a cleaner economy, an executive from Calgary-based Summit Nanotech says.

Summit is a startup in the field of direct lithium extraction (DLE), a technology which uses membranes to extract lithium from brine, rather than brine evaporation ponds that rely on the sun.

Adam Le Dain, the vice-president of strategy and corporate development at Summit, said DLE carries advantages in speed, yields and sustainability compared to traditional lithium extraction. With the world ever hungrier for lithium to produce lithium-ion batteries for electric vehicles (EVs) and energy storage, such technology is necessary, he said.

Meeting Canada’s proposed electric vehicle sales mandate for 2035 requires replacing millions of cars registered today in Canada, and a significant amount of lithium batteries.

“While traditional mining methods have been able to deliver this critical mineral thus far, the advent of DLE is an opportune moment to collaboratively improve the future of lithium mining and work toward the common goal of addressing the energy crisis,” Le Dain wrote in an email exchange with Sustainable Biz Canada.

The advantages of DLE

Le Dain and other DLE companies argue the process is a superior option compared to lithium evaporation.

A major difference is time. Using evaporation ponds takes 18 months to yield lithium, Le Dain said, while DLE requires approximately one day to produce viable lithium. The pace of traditional lithium extraction “cannot keep pace with today’s rising demands."

In terms of volume, DLE also wins out, he contends. DLE can produce yields exceeding 90 per cent, while evaporation ponds only give 40 per cent to 65 per cent yields. In testing carried out in 2023, Summit managed to recover 98 per cent of the lithium in brines.

In a comparison of environmental impact, Le Dain said traditional lithium mining is reliant on chemicals, consumes a large amount of freshwater which damages aquifers, generates a significant amount of waste and occupies vast swathes of land. For locals in areas where lithium extraction takes place, it could harm their health, livelihoods and resources.

Summit claims its DLE called denaLi is more water-efficient and maintains water tables, which is critical in the water-scarce, arid areas of South America where most lithium evaporation players operate. It also uses 96 per cent less land compared to evaporation ponds, Le Dain said.

An analysis by Goldman Sachs comparing DLE to other forms of lithium extraction corroborates the points laid out by Le Dain.

But DLE does have some shortcomings. It remains water intensive, requires pre-treated water, and is still a relatively untested technology, according to the Cleantech Group.

The startup advantage

As newcomers, DLE startups like Summit are able to be more nimble compared to their larger counterparts, Le Dain said.

DLE technology, he continued, can be deployed “at a more flexible scale” compared to evaporation ponds due to the modularity, geographical versatility, resource variety and faster extraction rates.

“This means that OEMs (original equipment manufacturers) can work with miners to quickly ramp up production as needed in response to growing demand for EV batteries.”

Thus, he said, OEMs that partner with lithium startups can have a stable and cost-effective supply of lithium.

Meeting rising demand for lithium

Such a steady stream of lithium will be necessary, according to Le Dain.

An analysis by Wood Mackenzie found global demand for lithium chemicals will grow from over 800,000 tonnes of lithium carbonate in 2022 to approximately 2.5 million tonnes in 2030.

Current lithium resources and reserves cannot meet demand in the near future, he said. The International Energy Agency’s forecast for critical minerals estimates meeting the Paris Agreement goals will mean an almost 90 per cent increase in lithium demand over the next two decades.

The expected gap in supply presents a “highly favourable scenario for future lithium producers like Summit Nanotech,” he said.

Even with some automakers backing off on EV production as signs of an EV slowdown emerge, Le Dain expects lithium demand to remain high. A report from market research firm Rho Motion found global sales of electric and plug-in hybrid vehicles rose 31 per cent in 2023 - a decline from 60 per cent growth in 2022 - but a large increase nevertheless.

“With lithium batteries playing a significant role in the cost of EVs, automakers need a direct, low-cost and high-yield lithium solution to stabilize production as well as the cost of batteries, driving continued growth and consumer accessibility.”