DLE Weekly delivers the latest insights on Direct Lithium Extraction (DLE) technologies, industry developments, and market trends. Stay tuned to see how DLE is shaping the future of sustainable energy.
DLE Weekly - 30 May 2025
Global Business, BICHEM Group
Rio Tinto’s Partnership on Chilean Lithium Projects
Rio Tinto has entered strategic partnerships with Chilean state-owned miners Codelco and ENAMI, acquiring nearly 50% and 51% stakes, respectively, in the Maricunga and Altoandinos lithium projects. This marks the most significant shift in Chile’s lithium industry in over a decade. Rio Tinto plans to apply direct lithium extraction (DLE) technology although it remains unproven at commercial scale and will be used in Chile for the first time. The company brings experience from its DLE-based Rincon project in Argentina and its acquisition of Arcadium Lithium. However, with lithium prices down nearly 90% since late 2022, scaling DLE efficiently and reliably remains a key challenge. Construction of the Maricunga project is expected to begin within 3 to 5 years, pending updated environmental approvals.
A Lithium Extraction Company Advances DLE Technology in Argentina
U.S.-based Lilac Solutions has achieved a 91% lithium recovery rate and 99.4% impurity removal at its demonstration plant in Jujuy Province, Argentina, marking a major step toward commercialization. Its core ion-exchange DLE technology significantly reduces water use, consuming just 2 to 20 tons of water per ton of lithium carbonate compared to traditional alumina adsorption methods. Lilac Solutions is advancing commercial projects in Argentina, Chile, and the U.S. Great Salt Lake, and has been shortlisted in a project selection process with Chilean state company ENAMI. The company highlights the high selectivity of its technology, which is adaptable to complex brines. While DLE requires more electricity, the company maintains low operating costs and expects lithium demand to tighten by 2026.
Arkansas Approves First Lithium Royalty Rate for a Lithium Project
In May 2025, the Arkansas Oil and Gas Commission (AOGC) approved a 2.5% royalty rate on lithium brine extraction for the Smackover Lithium Project, marking the state’s first-ever royalty framework for lithium and potentially setting a precedent for future projects. The project, located in Lafayette and Columbia counties, is a joint venture between Standard Lithium and Norway’s Equinor. The approved rate includes a 2.5% gross revenue share paid quarterly, plus an annual brine usage fee of $65.05 per acre, amounting to around 3% in total compensation. Project leaders praised the decision for balancing landowner interests with industry development. This milestone is seen as crucial for reaching a final investment decision. The project aims to begin full-scale production by 2028, targeting an annual output of 22,500 metric tons of battery-grade lithium carbonate.
Major Lithium Producer Turns to Futures Hedging Amid Prolonged Price Decline
Facing continued declines in lithium carbonate prices, Qinghai Salt Lake Potash Company Limited recently announced plans to engage in futures hedging to mitigate price volatility and stabilize operations. On May 29, the benchmark lithium carbonate futures contract fell below RMB 60,000/ton, highlighting worsening supply-demand imbalances and rising inventories. Despite holding a strong cost advantage, with production costs as low as RMB 30,000 to 40,000/ton, the company aims to lock in profits through futures, signaling a cautious outlook on future pricing. Industry observers believe this move suggests that lithium prices may not have bottomed out. While many producers are already operating at a loss due to costs exceeding spot prices, the company reported a net profit of RMB 4.663 billion in 2024, underscoring its market-leading profitability driven by low-cost production.
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