HOUSTON, Sept 10 (Askume) – SLB (SLB.N) said on Tuesday it will commercially launch its version of a direct lithium extraction (DLE) system after years of testing in the Nevada desert.
The Houston-based oilfield services giant, formerly known as Schlumberger, is the latest company to make a major move in the fast-growing DLE sector, joining forces with Exxon Mobil (XOM.N) , Rio Tinto (RIO.AX) and other international companies .
Lithium has historically been produced using large, water-intensive evaporation ponds or open-pit mines. While DLE technology is different , they are similar to common household water softeners and are designed to extract about 90% or more of the lithium from saltwater, compared to about 50% for pond use.
SLB said it has developed a system that combines private EnergySource Minerals’ DLE technology with water treatment equipment from other companies. The TechnologyThe test was conducted at a brine deposit in Nevada controlled by Pure Energy Minerals (PE.V). SLB now plans to design a commercial version of the plant with an annual capacity of 10,000 tonnes and sell it to interested customers.
“We can build and install it anywhere in South America or North America,” said Gavin Rennick, president of SLB’s new energy division.
The company’s primary goal is to replicate its oil field business model by extracting lithium for customers with geological deposits of this critical mineral.
SLB believes its plant can produce lithium at less than $5,000 per tonne, a figure that covers operating and construction costs over 20 years.
According to Benchmark Mineral Intelligence, lithium prices are currently around $10,000 per tonne, down 75% from last year, meaning SLB can operate its processes at a lower cost in a low price environment and see this as an advantage.
Panasonic (6752.T) is testing the stability and quality of lithium at the project, Rennick said .
SLB has only tested its DLE system in Nevada, and several peers have found that altitude, weather and other factors can affect DLE operation . Still, SLB says it has tested brines from around the world in its pilot facilities.
“We are now very confident that we can provide this type of economic data at the production level of various assets,” Rennick said.
