Lilac Secures $145 Million Funding for Lithium Project in the United States

Amidst a downturn in lithium prices prompting caution among companies in the industry, Lilac Solutions has managed to secure a substantial $145 million investment from Breakthrough Energy Ventures and other backers. This funding is earmarked for the development of a lithium extraction project situated on Utah’s Great Salt Lake, as well as for expanding operations to additional sites.

Lilac employs an innovative method utilizing ion-exchange beads to selectively extract lithium compounds from saline brines. The company asserts that its proprietary technology yields significantly higher lithium extraction rates compared to conventional processes reliant on evaporation ponds to generate a concentrated lithium-rich solution. Already, Lilac has a demonstration facility operational at Lake Resources’ brine operation in Argentina, with plans underway to establish a pilot plant in Utah later this year. The objective is to achieve an annual lithium chemicals production capacity of 3,000 metric tons at the Utah site by 2026.

Unlike the brines found in regions like Argentina and Chile, the Great Salt Lake possesses lower lithium concentrations, rendering traditional evaporation pond methods impractical. Meeting the burgeoning demand for lithium in the battery industry necessitates the exploitation of lower-quality brines, a challenge that Lilac’s direct lithium extraction (DLE) processes are poised to address effectively.

Lilac’s advancements come at a time when numerous other companies are facing setbacks in progressing new projects, largely due to the substantial decline in lithium prices—amounting to approximately 80% over the past year. Albemarle, for instance, has initiated workforce reductions and announced the postponement of a significant lithium processing facility in South Carolina. Liontown Resources has similarly delayed an expansion of its hard rock mine in Australia, while Sayona Mining may decelerate operations at a Quebec-based mine. Compass Minerals recently revealed the abandonment of its plans for a lithium operation on the Great Salt Lake due to regulatory hurdles and depressed prices.

Companies like Lilac, focused on developing DLE technology, appear to be somewhat shielded from the current downturn in lithium prices compared to conventional mining ventures either on the brink of commencing operations or already in production. This divergence in fortunes can be attributed to their emphasis on bolstering lithium output in the future, aligning with projections that anticipate demand surpassing supply. For instance, Lake Resources, a partner of Lilac, foresees commencing lithium production utilizing Lilac’s technology not until 2027.

Lilac Solutions’ successful funding round amidst challenging market conditions underscores the potential of innovative approaches to lithium extraction. By leveraging advanced technology and strategic partnerships, Lilac aims to play a pivotal role in meeting the escalating demand for lithium while adapting to the evolving landscape of the industry.