This Week (11.2-11.7) Overseas Lithium Highlights [SMM New Energy Overseas Weekly Highlights]

[Prairie Lithium Initiates Construction of North America's Largest Direct Lithium Extraction (DLE) Plant]

Australian company Prairie Lithium has commenced construction of a facility in Saskatchewan, Canada, which it claims will become North America's largest direct lithium extraction (DLE) facility.

Currently, the largest known DLE plant is operated by Standard Lithium in Arkansas, US. In March 2024, this Canadian company successfully installed and commissioned a commercial-scale Li-Pro Lithium Selective Sorption (LSS) unit supplied by Koch Technology Solutions (now renamed AquaTech).

In comparison, Prairie Lithium's facility will be equipped with four commercial-scale DLE columns, expected to arrive by April 2026. The company stated that the successful de-risking validation of a commercial-scale DLE column in Arkansas over the past 18 months, combined with the high-grade brine resources of its lithium project, provides confidence in the technology's performance and scalability.

Construction of the lithium extraction plant at Mine 1 has now begun, with foundation work expected to be completed in Q1 2026, followed by the start of plant building construction. The company has submitted an application to Saskatchewan Power Corporation to connect Mine 1's drilling and plant operations to the power grid.

"The start of construction for the lithium extraction plant at Mine 1 is a significant step on our critical path to production. The foundation we are laying today will support what is known to be the largest DLE facility in North America," said Paul Lloyd, Managing Director of Prairie Lithium, in a press release.

Lloyd added that the scale of the plant demonstrates the maturity of the Prairie Lithium project. The company plans to use traditional oil and gas drilling and completion techniques to extract lithium-rich brine from aquifers approximately 2.3 km underground, then separate the lithium resources via DLE technology.

The project holds underground mining rights covering over 345,000 acres in the Duperow Formation, with controlled and inferred resources estimated to be equivalent to 4.6 million mt LCE.

Source: mining.com

[Smackover Formation in Texas Sets High-Grade Standard for Lithium Brine]

Smackover Lithium (a joint venture between Standard Lithium and Equinor, with a 55:45 ownership split) stated that the initial inferred resources from its Franklin project in northeastern Texas indicate the highest lithium brine grade in North America.

According to a press release issued on Wednesday, the project's total brine volume is 0.61 cubic kilometers, with an average lithium content of 0.668 grams per liter, equivalent to 2.16 million mt LCE. The company also reported that the project contains 15.4 million mt of potash (in the form of KCl, recently included in the U.S. Geological Survey (USGS) draft critical minerals list) and 2.64 million mt of bromides.

Standard Lithium, which operates the joint venture, stated in a press release: "This preliminary project definition is a key step toward our multi-phase construction goal of ultimately achieving an annual lithium chemical production capacity of over 100,000 mt in Texas."

The project integrates mining with oil and gas technology, a collaborative model that is becoming a trend in the development of the Smackover Formation—a widespread limestone formation extending from Texas through Louisiana, southern Arkansas, Mississippi, and Alabama to the Florida Panhandle. ExxonMobil (NYSE: XOM) plans to achieve initial production as early as 2027, while Albemarle and Standard Lithium have also expanded their footprint in Arkansas.

On Wednesday afternoon, Standard Lithium's stock price rose 2.2% to C$4.64 in Toronto, bringing its cumulative gain over the past 12 months to nearly 50%. The company's market capitalization is approximately C$1.1 billion (US$880 million).

Subsequent Plans

Key risks include scaling up direct lithium extraction (DLE) technology for stable commercial operation; securing and permitting electricity, water sources, and reinjection capacity while maintaining reservoir pressure; coordinating royalties and lease terms across multiple landowners; securing offtake agreements and financing amid lithium price volatility; and demonstrating reservoir connectivity and grade stability over the full mine life cycle. Additionally, establishing a stable value chain for by-products such as potash and bromine represents a hurdle to market entry.

The Rise of the Smackover

The Franklin project, located about 400 km northeast of Austin (near Mount Vernon), covers a total area of approximately 323.8 km² (80,000 acres), with over 186 km² already leased for resource development. Previous testing at the Pine Tree No. 1 well measured a brine lithium content of 806 mg/L.

If successfully developed, two additional East Texas projects advanced by the joint venture in Texas could roughly triple the company's project scale in the state. Texas' royalty and lease terms differ from those in Arkansas, which will be a key factor influencing project economics.

Although the U.S. Geological Survey and Arkansas officials noted last year that the Smackover Formation brines hold potential for millions of tons of lithium resources, as of mid-October, the price of this battery metal had fallen 8% YoY, with only a slight rebound in November.

On October 10, Fastmarkets assessed the Chinese battery-grade lithium carbonate price at 72,500–73,000 yuan/mt (slightly over $10,100), hitting a one-year low. The Wall Street Journal reported on Wednesday that, influenced by restocking and selective production cuts, the price of lithium carbonate rebounded to $10,925/mt, still far below the peak of around $88,500/mt seen in November 2022.

Direct Lithium Extraction (DLE) Technology

The development plan for the Smackover region involves direct lithium extraction (DLE) technology: extracting brine, selectively capturing and purifying lithium, and then reinjecting the brine. This technology can shorten the production cycle from several months to a few hours and reduce land use, although the unit cost may be higher than traditional evaporation methods.

Standard Lithium plans to draw on operational data from its demonstration plant in El Dorado, Arkansas, as well as experience from its project in southwestern Arkansas.

Other enterprises adopting DLE technology include Occidental Petroleum and Berkshire Hathaway Energy, which are testing lithium extraction from geothermal brine at the Salton Sea in California; E3 Lithium, which is advancing a DLE project for Alberta's brine; and SQM, which claims to have achieved high recovery rates in its Chilean trials.

In terms of funding, the US Department of Energy (DOE) has indicated it is considering investing up to $225 million in Standard Lithium's southwestern Arkansas project.

Source: mining.com

[Sigma Lithium, Once a Lithium Industry "Star Stock," Faces Multiple Troubles as Its Stock Price Plummets 29%]

Sigma Lithium Corp.'s stock price continued to plummet sharply, with growing market concerns over its short-term capacity and potential delays in a key expansion project.

The stock, once regarded as an industry "star stock," recently took a sharp downturn, losing nearly one-third of its market value this week and recording the worst two-day decline in 21 months. On Tuesday, the stock fell more than 7%, becoming one of the worst performers in the lithium mine producer index.

Previously, Sigma abruptly replaced its mining contractor last month, stating the move was to enhance operational efficiency at its flagship mine in Brazil. Relevant sources indicated that plans to introduce higher-tonnage trucks and modernize some equipment could increase capital expenditures and delay the expansion project's progress.

Relevant sources believe "the exact cause of the recent stock price volatility remains uncertain, but it is known that the market has many questions regarding the mining contractor change, balance sheet issues, and other factors, leading to Sigma's underperformance during the current lithium price rebound."

Currently, Sigma is facing dual pressures from weak battery metal prices and intensified investor scrutiny. The company has not yet responded to requests for comment.

After a 64% shrinkage in market value in 2024, Sigma's stock price has accumulated a decline of over 50% this year.

The global lithium market is in turmoil: electric vehicle (EV) demand growth fell short of expectations, and adjustments to clean energy policies for the world's largest economy by US President Donald Trump have further exacerbated market difficulties.

Source: mining.com

[California Lithium Firm Plans 2026 Listing to Attract US Government Investment]

A California-based lithium company plans an initial public offering (IPO) next year to make itself an attractive investment target for the US federal government.

Controlled Thermal Resources (CTR), which has operated privately for over a decade, aims to spin off its mineral assets and part of its geothermal power business into a publicly listed firm named American Critical Resources by July next year.

CEO Rod Colwell stated the company must first commercialize its unproven direct lithium extraction (DLE) technology to produce lithium metal for EV batteries required by Stellantis and General Motors, and is currently selecting a listing venue between the NYSE and Nasdaq on the Intercontinental Exchange.

US Government Investment

The IPO plan comes as Washington's wave of investment in publicly traded mineral projects intensifies, including in rare earth producer MP Materials and Lithium Americas, which is part of President Donald Trump's goal to reduce US reliance on market-dominant China.

Colwell said, "If MP Materials were private, would the federal government have acted as it did? A pattern seems to have emerged in Washington, showing a preference for working with publicly listed firms because they offer a path to liquidity."

When asked if the IPO aims to secure US government funding, Colwell replied, "Absolutely."

Colwell, who will become CEO of American Critical Resources and whose family controls the majority of CTR's private shares, declined to provide a valuation estimate for the new company, adding that discussions are still in early stages.

Challenges in Commercializing DLE Technology

Like its peers, the company has struggled for years to commercialize DLE technology, which proponents claim is more sustainable than the two most common lithium production methods: open-pit mines and evaporation ponds.

The company missed its own 2024 deadline to supply General Motors.

The project, located at the Salton Sea about 160 miles (258 km) southeast of Los Angeles, is scheduled to begin lithium production in 2028 and was placed on the Trump administration's fast-track approval list. In addition to lithium, the new company also plans to produce zinc, manganese, and potash fertilizers from the brine extracted from deep reservoirs, which are rich in various critical minerals.

Australian consulting firm Hall Chadwick and investment bank Cohen & Co. are providing advisory services for this IPO process. The Salton Sea project faces litigation from the environmental protection organization Earthworks over water usage issues. Earlier this year, the state court ruled against the environmental protection organization, which is now appealing.

This latest move by California in the lithium sector comes at a time when competition among domestic stakeholders in the United States to lead the deployment of direct lithium extraction (DLE) technology is intensifying. For example, Arkansas is striving to outpace California in this regard.

Source: mining.com