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 - September 12 2025
Global Business, BICHEM Group
Building Permits for New Lithium Processing Plant
The German-Australian company Vulcan Energy plans to produce lithium hydroxide in Frankfurt-Höchst using its lithium precursor from geothermal brine. The now-approved plant, which the company itself refers to as the Central Lithium Plant (CLP) – will be used to process lithium chloride (LiCl) into lithium hydroxide monohydrate (LHM), with the LiCl to be extracted at the upstream geothermal and lithium plant in Landau.
Vulcan's primary aim with this approach is to create a local source of sustainable lithium in Europe. Vulcan's geothermal and lithium resources are considered the largest in Europe, with the licence areas concentrated in the Upper Rhine Valley in Germany. In 2023, Vulcan announced the results of a final feasibility study for the first phase of its lithium project, according to which Vulcan initially plans to produce 24,000 tonnes of lithium hydroxide monohydrate per year. The company has now confirmed this figure following the granting of the building permit in Höchst. The volume is expected to be sufficient for the production of approximately 500,000 electric vehicle batteries per year.
Landau and Höchst – these locations have long been central to Vulcan Energy. The company already operates 1:50 scale test facilities at both sites to refine the processes for the future commercial plants. In April 2024, the first lithium chloride was filtered out of geothermal brine at the LEOP (Lithium Extraction Optimisation Plant) in Landau. In November 2024, this precursor product was processed for the first time into battery-grade lithium hydroxide at the Central Lithium Electrolysis Optimisation Plant (CLEOP) in the Höchst Industrial Park.
The CLP that has now been approved is Vulcan’s large-scale commercial processing plant. The lithium specialist has not yet specified when it will go into operation, but assures that the plant’s capacity could be expanded beyond 24,000 tonnes per year in a second stage.
Updates on HMW Project
Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to provide an update on the progress of Phase 1 construction at its Hombre Muerto West (HMW) lithium brine project, located in the Catamarca region of Argentina.
Recent activity at the HMW site has focused on the detailed design of Pond 4, procurement of pond liners, and ongoing electrical system design - all critical path items for the project. Pond 4 has been redesigned to support a 4,000 tpa lithium carbonate equivalent (LCE) operation, optimising residence time for processed brine and accelerating delivery of final lithium chloride concentrate.
Construction of the nano-filtration plant by Authium Limited (Authium), has also progressed significantly. Key milestones include completion of engineering design, placement of major equipment orders, and completion of structural steelwork.
Authium has conducted extensive testwork on raw brine samples from HMW under varying temperatures and pressures. The nano-filtration units demonstrated excellent impurity rejection, successfully removing 99% of sulphates from the raw brine. Sulphate rejection is critical to enable brine concentration without significant lithium losses. Stress testing of the filtration elements showed no significant scaling or fouling. In the coming weeks, Authium will commence general assembly of valves, pumps, piping, and fixtures, alongside continued development of the plant's control system.
Construction activities are progressing smoothly and are on track for completion in 2025. The nanofiltration plant is expected to be delivered to HMW in December 2025, with commissioning scheduled for January 2026, ahead of first production of lithium chloride concentrate in H1 of 2026.
Atacama Lithium Partnership
Chile's state-owned copper miner Codelco and SQM (NYSE: SQM), the world's second-largest lithium producer, are nearing the completion of a landmark deal to jointly extract lithium from the Atacama salt flats
Under the agreement, first signed in December 2023, SQM will hand over a majority stake in its Atacama operations to Codelco in exchange for an extension of its production rights until 2060. The pact, which stems from President Gabriel Boric's national lithium strategy, still requires antitrust approvals from regulators, including those in China, with a decision anticipated later this month or in October.
The partnership is seen as a critical move for Codelco, which is grappling with declining copper output and significant debt from over-budget expansion projects. Data from the IndexBox platform indicates that global lithium demand is projected to grow substantially, driven by the electric vehicle market, making this diversification a strategic opportunity for the copper giant. For SQM, the deal ensures operational continuity for nearly four more decades. However, the agreement has drawn criticism from some economists who argue it undervalues Chile's lithium assets. Economist Marcela Vera called the pact "a surrender of sovereignty," noting that SQM will retain nearly half of future revenues from a resource classified as non-concessionary under Chilean law. She pointed to Rio Tinto's recent $6.7 billion acquisition of Arcadium Lithium in Argentina, which has half the production capacity of SQM's Chilean operations, as a benchmark that suggests Chile could have secured significantly higher state revenues. Codelco's push into lithium comes as the company faces deep structural challenges, including falling ore grades at aging mines and debt levels that have climbed to roughly six times its EBITDA. The deal is expected to endure beyond President Boric's term, which ends in 2026, given Santiago's history of respecting past resource contracts.
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