International Battery Metals Ltd. (CSE: IBAT) revealed on May 6, 2024, a partnership agreement with US Magnesium LLC (US Mag) to deploy the world's inaugural patented modular direct lithium extraction (DLE) plant at a brine resource site. This mobile facility will be situated alongside US Mag's current operations near Salt Lake City, Utah. IBAT's plant will handle brine derived from lithium-rich waste-magnesium salts, producing lithium chloride as a final product. This lithium chloride will serve as the feedstock for US Mag's high-purity lithium carbonate production.

Design featuring modularity and transportability. Over the past month, IBAT has initiated the setup of a substantial portion of equipment, including the connection of pipes and utilities, along with various other installation tasks, for its patented modular extraction plant located at the US Mag site.. The initial testing phase for crucial equipment is currently in progress. IBAT expects to achieve full commissioning and startup within the next three months, with commercial lithium production anticipated to commence shortly thereafter.

"Our collaboration with US Mag will drive forward a profitable lithium extraction venture," stated Garry Flowers, CEO of IBAT. "Given the current surge in lithium demand and the challenges associated with supply dependency on China and complex permitting processes, IBAT upcoming commercial operations are strategically poised to support extensive lithium production within the United States."

The patented modular plant of IBAT was constructed in Lake Charles, Louisiana, and subsequently transported to US Mag.

independently Verified. IBAT's technology has undergone rigorous validation through an independent assessment conducted by SLR International Corporation, a renowned provider of environmental and engineering services, as well as Greg Mehos & Associates LLC, an independent testing agency. Demonstrating its effectiveness across diverse brine resources, including lithium-containing oilfield produced brines, IBAT's technology has shown promising results, notably through a large-volume test conducted with Galvanic Energy in the Smackover Formation in Arkansas. Additionally, the technology has proven effective with various subterranean brine resources in regions such as Alberta, Saskatchewan, Michigan, Ohio, Oklahoma, California, and Texas, as well as Salars in Chile and Argentina, and geothermal brine in Germany.

Commercial operations will cater to the increasing demand for lithium from automakers for electric vehicle batteries, along with energy storage batteries needed to meet rising electricity demands and grid balancing requirements resulting from the growing integration of renewable energy sources.

Designed for sustainability. IBAT's pioneering patented modular and mobile lithium extraction plant has been independently validated to extract over 97% of available lithium from brine. Moreover, both laboratory and field tests have showcased the plant's proprietary selective absorbent, which optimizes lithium uptake while minimizing brine-based impurities effectively. Thanks to the plant's advanced water recovery rate, IBAT's technology stands as a staunch protector of sensitive water resources. IBAT has successfully demonstrated that the technology can extract lithium from subterranean brine sources and return the lithium-depleted brine to the same subsurface aquifer in a closed recycling loop. This accomplishment has been corroborated through testing with natural brines across Canada, the United States, Argentina, Chile, Mexico, and Europe. Apart from the use of acid and base for pH control, IBAT's compact lithium extraction process avoids introducing chemicals into the brine. This unique patented technology not only promises expedited delivery of lithium chloride but also ensures minimal environmental impact.

Small footprint, high yield. Another advantage is that the modular and easily transportable technology can function within a three-acre site, significantly reducing the footprint compared to other lithium production facilities. The modular and compact design enhances both plant construction and operational efficiency. Engineering evaluations have confirmed that the IBAT DLE plant's design capacity can initially produce up to 5,000 metric tons per year, contingent upon brine resource characteristics like lithium concentration and brine salt composition. Additionally, the modular plant can be expanded to support larger capacities as demand dictates.

With its modular DLE operations, IBAT is poised to become a significant supplier for the increasing demand for lithium in the United States, offering an alternative to China and other global suppliers. This established technology will enable commercial-scale production with a reduced footprint, both in terms of facility size and environmental impact.

"International Battery Metals' patented Modular Extraction Technology will serve as the foundation for future lithium extraction from brine resources globally. It stands out as the swiftest technology to deploy and initiate commercial operations," stated Dr. John Burba, founder, CTO, and director of International Battery Metals. " Furthermore, IBAT's technology surpasses existing DLE operations in efficiency and environmental protection due to its inherent features. We are thrilled about the installation of our inaugural plant on a resource and the anticipated commencement of commercial operations."

Under the agreement, IBAT receives royalties from US Mag linked to lithium sales, alongside payments for equipment operations determined by lithium prices and performance.