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 - August 22 2025
Global Business, BICHEM Group
Global lithium demand growth spurs expansion plans despite profit drop
SQM, Chilean lithium producer, reported a 59% decline in second-quarter net profit, as weak lithium prices weighed on results. Core earnings fell 28% year-on-year to $308 million, while revenue dropped 19% to around $1 billion, largely due to lower market prices and certain contracts hitting floor levels.
Despite the downturn, the company struck an optimistic tone. SQM expects lithium sales volumes in Chile to rise about 10% this year and has raised its sales forecast for its Australian operations to roughly 20,000 metric tons of lithium carbonate equivalent (LCE). In July, the company’s Kwinana refinery in Australia achieved its first commercial production, with plans to ramp up to 50,000 tons of lithium hydroxide annually by the end of 2026, half of which will be attributable to SQM.
The company reaffirmed its outlook for 17% global lithium demand growth this year, noting that recent production cuts in China have helped prices recover. Sticking to its “volume-driven” strategy, SQM plans $750 million in capital expenditures this year and continues to expand capacity, targeting 240,000 tons of lithium carbonate and 100,000 tons of lithium hydroxide annually in Chile by 2026.
Chile advances lithium project with lithium giant partnership
Chile’s Ministry of Mining announced that the operating contract for the Altoandinos lithium project, to be managed by state-owned miner ENAMI, is ready for signing with global mining giant Rio Tinto. Chilean Copper Commission (Cochilco) issued a favorable report, clearing the way for the signing of a Special Lithium Operating Contract (CEOL). The contract will define the project’s operational term, fiscal and community benefits, R&D commitments, and contributions to Indigenous communities. It will also require the adoption of advanced lithium extraction technologies.
The agreement remains subject to review by both domestic and international regulators and is expected to be finalized in the first half of 2026. Currently at the research stage, the Altoandinos project aims to begin production by 2032. Located in Chile’s Atacama Region, it is the country’s largest greenfield lithium project, with resources estimated at more than 15 million tonnes of LCE.
Mexico advances lithium extraction from oilfield brines to boost energy diversification
PEMEX, Mexico’s state-owned oil company, announced a strategic transformation to extract lithium from oilfield brines, aiming to diversify its energy portfolio and strengthen national resource sovereignty. High-grade lithium deposits have been identified across five states, and the company plans to establish a dedicated subsidiary, PEMEX Lithium, to focus on “petro-lithium” operations. The initiative will rely on DLE technology, which leverages existing oilfield infrastructure to reduce capital costs. However, challenges remain, including complex brine impurities, high magnesium-to-lithium ratios, and environmental compliance. PEMEX is conducting pilot tests in collaboration with multiple technology providers and aims to finalize the commercial process by 2025. If successful, the project could generate significant foreign exchange, create jobs, and reduce Mexico’s oil dependence. Its ultimate viability will hinge on technological breakthroughs and lithium market conditions.
Australian lithium refinery faces setbacks as partners weigh future options
Tianqi Lithium, Chinese mining and manufacturing company, has signaled its willingness to renegotiate terms with joint venture partner IGO over their stakes in the Kwinana lithium hydroxide refinery in Western Australia. The facility, Australia’s first lithium refinery, has been plagued by falling lithium prices and operational setbacks, leading IGO to book impairments and cast doubt on the project’s prospects. Tianqi Lithium said that if IGO no longer wishes to remain in the partnership, it may propose an exit plan, though no formal proposal has yet been received. He stressed that Kwinana is a “bundled asset” with the world-class Greenbushes lithium mine jointly owned by the two companies, rejecting the idea of bringing in a new partner and likening the relationship to a “marriage”. Despite mounting challenges, Tianqi Lithium has no plans to shut the plant. The company expects capacity utilization to rise to 65% next year, with the refinery eventually reaching its annual output of 24,000 tonnes.
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