In California's "Lithium Valley," the inaugural stages of constructing the first large-scale direct lithium extraction plant in the U.S. have commenced, signalling a potential transformation of the Salton Sea area into a crucial source for this essential material in the energy transition. Led by Australia-based Controlled Thermal Resources Holdings Inc., the $1.85 billion project aims to establish a fully integrated lithium and renewable power production facility along the sea's shore in the Imperial Valley region. The groundbreaking on January 30 marked the initiation of the first phase of this groundbreaking facility, with CEO Rod Colwell expressing the ambition to create a sustainable battery materials and clean energy campus that sets new standards for battery supply chain integration in the United States.

Distinguished by its integration of a geothermal power plant with lithium production, this plant stands as the world's first facility to combine these two processes. The initial phase is projected to yield approximately 25,000 metric tons of battery-grade lithium hydroxide monohydrate annually, enough to support the production of around 415,000 electric vehicles each year.

Major automakers have already recognized the potential of this venture, with General Motors becoming the inaugural private investor in 2021, contributing an undisclosed "multi-million" dollar amount. Subsequent support arrived in August 2023 when Stellantis invested $100 million. Upon reaching full operational capacity, the site is anticipated to produce up to 300,000 metric tons of lithium carbonate equivalent annually.

The direct lithium extraction method employed at the plant operates through a two-step process. Initially, a geothermal power plant generates clean power and steam, extracting lithium from the geothermal brine brought to the surface during the power generation process.

This direct extraction process, while not a new technology and having been in use for decades in Argentina, offers significant environmental advantages over traditional hard rock mining methods. The latter involves extensive processes such as blasting rock, soaking it in sulfuric acid, and high-temperature roasting to release lithium. In contrast, the direct extraction process applied to geothermal and oil field brines minimizes environmental impact as existing infrastructure is leveraged, and lithium is selectively filtered from already-produced brine flows. This approach eliminates the need for constructing extensive infrastructure.

Moreover, the method boasts a comparable extraction rate to hard rock mining (about 95%) without the necessity for evaporation brine ponds, open pit mines, and fossil-fuelled processing. Notably, it generates its own power to drive the extraction process. With the anticipated growth in electric vehicle production in the years to come, the demand for lithium is expected to witness a significant surge, reinforcing the importance of sustainable and environmentally friendly extraction methods.