The Conversation (0)
SQM's Carlos Diaz said the company has looked at over 70 direct lithium extraction technologies, with two out of the 12 chosen for pilot testing now being evaluated.
JLStock / Shutterstock
SQM (NYSE:SQM) plans to choose one or more direct lithium extraction (DLE) technologies by next year.
The decision, confirmed by Carlos Diaz, SQM's lithium division head, at Fastmarkets' Lithium Supply and Battery Raw Materials Conference, held in Las Vegas from June 24 to 27, comes as part of a broader effort to expand production of lithium, a crucial metal for electric vehicle batteries, in the Salar de Atacama region.
"We would like to have multiple (DLE) solutions," Reuters quotes Diaz as saying. "It's difficult to choose one that is going to fit and be suitable for all kinds of different chemicals that can be in different types of brine."
Diaz further revealed that the Chilean lithium company has evaluated over 70 DLE technologies and selected 12 for pilot testing, with two of the shortlisted technologies currently being tested. SQM's goal is to increase its annual lithium production to between 280,000 and 300,000 metric tons by 2060, up from an estimated 200,000 tons in 2024.
SQM is weighing several factors in its decision-making process, such as the higher electricity consumption of DLE technologies compared to traditional evaporation ponds, and the freshwater requirements of some DLE variants.
The company is also considering how reinjecting brine post-lithium extraction could impact local aquifers.
Chile is currently the world's second largest lithium producer, trailing only Australia. The country's lithium output is largely driven by SQM and its competitor, Albemarle (NYSE:ALB). Both companies are exploring the use of DLE technologies, which have yet to be proven effective on a commercial scale without the aid of evaporation ponds.
At the end of May, SQM entered into a partnership agreement with Codelco, Chile's stated-owned copper miner, through which the two will jointly exploit lithium and other products in the Salar de Atacama.
In addition to its these advancements, SQM recently secured long-term agreements to supply lithium hydroxide to Hyundai Motor (KRX:005380) and Kia (KRX:000270), two of South Korea's leading electric vehicle manufacturers.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
SQM
https://x.com/giannliguid
https://www.linkedin.com/in/giannliguid/
Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
INN Article Notification
Outlook Reports world
Featured Lithium Investing Stocks
Browse Companies
MARKETS
COMMODITIES
CURRENCIES
Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
Learn about our editorial policies.