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- Vulcan Energy (VUL) is unveiling its plans to use the proven and tested Adsorption Direct Lithium Extraction at its lithium brine project in the Upper Rhine Valley region of Germany
- The tech allows for far cleaner downstream lithium processing with no requirements for acid and a water wash can be used
- The company is seeking to use geothermal renewable power to underpin the process, doubling up on green credentials
- Goldman Sachs has said the tech is to lithium what fracking was to the gas boom
- Shares last traded at $3.88
Vulcan Energy (VUL) has revealed its plans for a more sustainable lithium supply from its lithium brine project located in the Upper Rhine Valley region of Germany.
Primarily, Vulcan is adopting a proven and well-understood process called Direct Lithium Extraction (DLE) to extract lithium from feedstock, a mainstream process in the industry.
Advisory firm Darcy Partners notes that DLE is becoming even more popular in downstream lithium processing, partly due to its alignment with ESG targets and decarbonisation strategies.
Vulcan’s patented tech
Vulcan Energy is opting for the Adsorption method of DLE, which the company considers the most environmentally-friendly approach.
By utilising an aluminium-based ‘sorbent’ – a molecule to which lithium molecules attach in a treatment pond – the company can eliminate the need for downstream acids and acid washes, enhancing its green credentials.
Vulcan Energy’s patented VULSORB sorbent product, developed in Germany and France, plays a pivotal role in advancing the German DLE project.
“VULSORB offers higher lithium capacity than other lithium aluminate intercalate sorbents available on the market,” the company wrote.
With a pilot plant operational since 2021, Vulcan Energy has three years of laboratory test work completed in the 2020s, backed by tens of thousands of hours of smooth operations.
New lithium extraction plant inbound
Ongoing pilot plant data is informing the definitive feasibility study (DFS) for the project.
Furthermore, the company’s new lithium extraction plant, set to be operational before 2024, will be situated next to a geothermal power plant, harnessing renewable energy for the downstream process.
Less acid means more green credentials
The DLE process involves using only water to wash lithium downstream, resulting in less waste and lower environmental risk.
Despite the increasing popularity of DLE, the underlying science has decades-old commercial precedents. Adsorption DLE (A-DLE) can achieve superior recovery rates, with an extraction efficiency of more than 90 per cent.
Goldman Sachs analysts liken the impact of DLE on the lithium market to what fracking did for the gas industry, potentially doubling lithium production through higher recoveries and sustainability benefits.
A-DLE to lithium what fracking was to gas
“The implementation of DLE technologies has the potential to significantly increase the supply of lithium from brine projects (much like shale did for oil), nearly doubling lithium production on higher recoveries,” GS analysts wrote.
“[This comes] with the added bonus of offering ESG/sustainability benefits, while also widening rather than steepening the lithium cost curve … we prefer briners to miners.”
Vulcan Energy, listed on both the ASX and Frankfurt Stock Exchange, is not the sole player picking up proven A-DLE technology.
Rio Tinto, Albemarle, Compass Minerals, SQM, Eramet, Exxon Mobil, Occidental Petroleum Corporation, and Chevron are also investing in this promising technology.
Vulcan Energy (VUL) shares last traded at $3.88.
