Global Lithium Demand Spurs Extraction From Brines

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Researched by Industrial Info Resources (Sugar Land, Texas)--Fueled by the advancements in battery technology due to the growing market for electric vehicles and the widespread use of consumer electronics such as laptops and phones, the demand for lithium is soaring. According to the World Economic Forum, lithium demand is anticipated to reach 1.5 million tonnes of lithium carbonate equivalent (LCE) by 2025 and more than 3 million tonnes by 2030.

As global demand continues to soar, procurement of lithium has also become a critical concern. While lithium is abundant in nature, only a few sources of extraction are economically viable. Owing to the lower setup and exploration costs, as well as the absence of extensive mining, extracting lithium from brines is regarded as a cost-effective and efficient method when compared to hard rock ores.

Lithium brines are deposits of saline groundwater that are rich in dissolved lithium. These salt lakes are found in closed basins in arid regions and are majorly found in South American nations like Argentina and Chile. Lithium extraction from brines involves a combination of evaporation and chemical processes. Brine is pumped to the surface and placed in a series of ponds to be evaporated. As the water evaporates, it leaves behind a concentrated brine with a high lithium-ion content which is further processed in a chemical plant. The end product is calcium carbonate and calcium hydroxide, which is majorly used in construction and industrial applications.

Industrial Info is tracking 159 capital spending projects worldwide, worth about US$43 billion, that are geared toward lithium extraction from brines. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of project reports.

South America is the biggest driver of investment, owning about half of the market with US$21 billion across 84 projects. There is also some investment being tracked out of North America, with around US$17 billion across 45 projects, and Asia with around US$3 billion.

By country, Argentina leads the way with a total spend pipeline of US$13 billion across 58 projects, followed by Canada (US$9 billion), U.S. (US$7 billion), and Chile (about US$6 billion.) Other countries with substantial investments include China, Bolivia and Germany.

With a combined project spend of around US$8 billion, LithiumBank Resources Corporation (Vancouver, Canada), E3 Lithium Limited (Alberta) and Zijin Mining Group Company Limited (Fujian, China) are the top players in the market and own a cumulative market share of 18%. LithiumBank Resources Corporation is planning to invest US$1.8 billion in mining operations at a lithium brine mine in Valleyview, Alberta. Subscribers can click here for the project report.

With 75% of the investment in the initial planning stages and 11% already under construction, most of these projects are anticipated to be completed by December 2028, while the rest will reach fruition by September 2033.

As the industry progresses, recent technology like direct lithium extraction (DLE) is expected to further lithium extraction from brines. Due to its selective absorbent process, faster setup in a compact area and low environmental impact, DLE holds promise in addressing the increasing global demand for critical minerals.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).