Lithium Energy Ltd (ASX:LEL) says conventional solar pond evaporation is a suitable development option for its flagship Solaroz lithium brine project in Argentina, according to scoping study work completed to date.
The Solaroz project is next to Allkem Ltd’s lithium facility in the Salar de Olaroz basin, in the heart of South America’s world-renowned ‘Lithium Triangle’.
Pond evaporation is a tried and tested production methodology on the Olaroz Salar and is currently used by the company’s adjacent global lithium neighbours Allkem and Lithium Americas Corp. to produce battery-grade lithium carbonate.
However, the study work also indicates that the Solaroz project is suitable for direct lithium extraction (DLE), providing the significant benefit of having multiple potential development pathways.
Hatch, the professional services conducting the study, has undertaken a tradeoff study to develop alternative flowsheet configurations to process lithium brines and produce battery-grade lithium carbonate at the project. This includes a conventional brine evaporation pond process design, and DLE options that involve several chemical processes to bypass the need for large evaporation ponds.
Further testwork and detailed studies to further evaluate the merits of each technology, will be completed before the preferred development pathway for Solaroz is determined. As well as engineering studies, the scoping study will also consider local environmental, infrastructure, community and permitting factors at the Olaroz Salar.
Lithium Energy expects to release the full scoping study results, including production targets and economics, in early Q4 2023.
Strategic partnerships advancing
The company also confirmed it has been approached by multiple, major third parties active in the EV battery sector seeking strategic partnership or investment opportunities with Lithium Energy to develop the Solaroz Project.
This interest backs the company’s view of the project being highly strategic, particularly given its size and location next to two major producing lithium projects — Allkem’s Olaroz lithium facility, (a JV with Toyota Tsusho) in the Olaroz Salar and Lithium Americas’ Olaroz-Cauchari Project (a JV with Ganfeng Lithium) on the neighbouring Salar de Cauchari.
Given the positive results from the study to date and the multiple approaches by significant market participants, Lithium Energy is now in discussions with parties to invite a strategic partner, or partners, to participate in the further development of Solaroz. This is in line with the pattern set by neighbouring projects led by Allkem and Lithium Americas.