Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on September 6, 2023 at 2:06

Lanxess Projects First Production in 2026

Standard Lithium Announces Positive Results of Definitive Feasibility Study for First Commercial Lithium Extraction Plant at LANXESS South Plant

Standard Lithium  Wed, September 6, 2023

Excerpt.  Link to full article: https://finance.yahoo.com/news/standard-lithium-announces-positive-...

 

First Production in 2026; Strong Project Economics with NPV of $550 Million and IRR 24%; Average Annual Production of 5,400 Tonnes of Battery-Quality Lithium Carbonate Over 25 Years

EL DORADO, Ark., Sept. 06, 2023 (GLOBE NEWSWIRE) -- Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE American:SLI) (FRA:S5L), announced today the positive results of a Definitive Feasibility Study (the “DFS”) for its first commercial lithium extraction plant project (“Phase 1A”) proposed to be located at the LANXESS South Plant (“South Plant”). The DFS considers first production of battery-quality lithium carbonate in 2026, using direct lithium extraction, from Smackover brine currently being produced by LANXESS Corporation (“LANXESS”) from their South Brine Unit.   

All figures are in US dollars unless otherwise stated.

Phase 1A Highlights:

• First production in 2026. Average annual production of 5,400 tonnes per annum (“tpa”) over the operating life with peak annual production of 5,700 tpa
• 25-year minimum operating life. Proven and Probable Reserves of 208 Kt lithium carbonate equivalent (“LCE”) at an average concentration of 217 mg/L support up to 40 years of operations
• Strong project economics. After-tax NPV $550 million and IRR of 24% assuming discount rate of 8% and a long-term price of $30,000/t for battery-quality Li₂CO₃
• Operating costs reflect first step to commercial production.Average annual operating costs of $6,810/t over the operating life
• CAPEX of $365 million. Total capex estimate of $365 million includes 15% contingency
• Upgraded Measured Resource. Total Measured and Indicated Resource of 2.8 Mt LCE at average concentration of 148 mg/L for the combined LANXESS South, Central and West Brine Units; Phase 1A represents production of approximately 5% of the total Measured and Indicated Resources

“We are taking a thoughtful, phased approach to project development,” said Dr. Andy Robinson, President and COO of Standard Lithium. “Phase 1A is the first commercial lithium extraction plant proposed for the Smackover, and a modest scale up from the Demonstration Plant that has been operating and efficiently extracting lithium from the same brine for over 3½ years. The Phase 1A Project is substantially de-risked as we move rapidly towards commercialization. We have a deep understanding of the Resource and history of extracting lithium from the brine using DLE, and we’ll be the first to do so at a commercial scale in the Smackover in partnership with LANXESS. We expect to replicate and scale the core elements of this first commercial plant across our extensive and growing project portfolio in the Smackover Formation in Arkansas and Texas.”

Robert Mintak, CEO of Standard Lithium, commented, “Building on the success of our demonstration DLE facility, Phase 1A taps into the long-established expertise in brine processing, complemented by the infrastructure at the LANXESS South Plant. Phase 1A marks the beginning of a series of lithium projects we've charted across the Smackover Formation, a region that's been integral to the U.S. energy sector for over a century. Leveraging this vast reservoir of knowledge and the region's culture of innovation, we aim to position the region as a significant contributor addressing the U.S.'s needs for sustainably produced lithium.”

“Following the completion of our DFS, our next steps include finalizing commercial agreements with LANXESS and securing project financing. We've partnered with BNP Paribas, a global leader in financial advisory and project financing for critical minerals projects, to serve as our lead debt advisor. We're also actively exploring opportunities within the U.S. Critical Mineral initiatives and the Inflation Reduction Act, focusing on non-dilutive funding solutions to advance our goals.”

Permalink Reply by Joe B. Lovelace on September 12, 2023 at 5:49

As you view the extraction of lithium for battery production, please keep in mind the "scale" of use beyond EVs to the necessary storage for the electric grid.

As brutal heat tests Texas’ power grid, batteries play a small but growing role in keeping the lights on

https://www.texastribune.org/2023/09/12/texas-power-grid-batteries/

Permalink Reply by Skip Peel - Mineral Consultant on September 12, 2023 at 6:13

Lithium based batteries will excel in certain applications but likely not in grid storage.  There are other means besides batteries for grid storage and some battery technologies that should have advantages over lithium for grid storage.  Here is a quote and links to some articles on the future of grid storage.

“Solid state batteries have multiple advantages over lithium-ion batteries in large-scale grid storage. Solid-state batteries contain solid electrolytes which have higher energy densities and are much less prone to fires than liquid electrolytes, such as those found in lithium-ion batteries.”

https://www.energy-storage.news/diversifying-a-us200-billion-market...

https://www.technologyreview.com/2022/02/23/1044962/grid-battery-ir...

https://www.sandia.gov/labnews/2021/08/02/better-batteries-for-grid...

Permalink Reply by Skip Peel - Mineral Consultant on September 12, 2023 at 7:38

Oil and Gas Companies Turn to Brine as Source of Lithium for EV Batteries

By Daniel Hall  Sep 12, 2023  energyportal.eu

The electric vehicle revolution is presenting a new opportunity for oil and gas companies to extract value from the brine wastewater produced during drilling operations. These companies are now looking to tap into the lithium content in the brine, which is a key component in the production of EV batteries. By extracting lithium from brine in producing wells, oil and gas companies can create a new revenue stream in the rapidly changing energy transition.

CEOs of major oil and gas companies like Exxon Mobil, Chevron, and Occidental Petroleum have all expressed interest in pilot projects to extract lithium from brine. Occidental Petroleum’s subsidiary has already developed a technique to remove lithium from brine in various operations, including new wells, oil and gas fields, geothermal power production, and chemical operations. Exxon Mobil has also been exploring lithium extraction for some time.

The demand for lithium is soaring as automakers ramp up the production of EVs worldwide. Traditionally, lithium is extracted from hardrock and clay or through evaporation using large ponds. However, oil and gas companies are now turning to “direct lithium extraction” technologies, which directly remove lithium from brine in salt flats, bodies of water, or from the wastewater of oil and gas drilling.

One region that has emerged as a potential lithium hub is the Smackover formation in Arkansas. Companies have been extracting lithium-rich saltwater brine from this area for decades, primarily for oil and gas production. Exxon is reportedly planning to build one of the world’s largest lithium processing plants in the region.

While the pivot towards critical minerals like lithium presents a new opportunity for the oil and gas industry, there are concerns about oversight and scrutiny. Brine can contain drilling chemicals, as well as minerals and radioactive materials, raising questions about potential environmental impacts. Some argue that the industry is trying to extend its business model through various carbon management techniques, including lithium extraction.

Globally, demand for lithium is projected to increase significantly, and current production centers in Australia, Chile, Argentina, and China may not be able to meet the growing demand. The International Energy Agency highlights the need for new technologies like direct lithium extraction to ease the supply crunch and unlock new supplies.

Oil and gas companies, including Occidental Petroleum and Chevron, are eager to seize this opportunity and explore the potential of lithium extraction. However, there is a need for careful oversight to ensure that the extraction process does not pose any risks to the environment or public health.

Permalink Reply by Skip Peel - Mineral Consultant on September 15, 2023 at 6:03

Standard Lithium Acquires Large Parcel of Land for South West Arkansas Project

September 13, 2023  Press Release

Excerpt.  Link to full article including map:  https://www.standardlithium.com/investors/news-events/press-release...

EL DORADO, Ark., Sept. 13, 2023 (GLOBE NEWSWIRE) -- Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE American:SLI) (FRA:S5L), a leading near-commercial lithium company, today announced the acquisition of 118 acres of land intended to advance development of its South West Arkansas Project (“SWA Project” or the “Project”).

Dr. Andy Robinson, President and COO of Standard Lithium, commented, “The land purchase demonstrates our commitment to advancing and de-risking the South West Arkansas Project. The land, which lies to the south west of the SWA Project’s brine lease footprint, is ideally located close to a paved highway, robust regional infrastructure and a skilled workforce. This acquisition adds to our existing land options in the Project area and provides us with added design flexibility as we progress the Project to the Definitive Feasibility and FEED phase.”

Permalink Reply by Skip Peel - Mineral Consultant on September 18, 2023 at 0:31

Powering down: lithium battery supply exceeds demand

With ongoing oversupply issues, the battery market is in flux. As lithium-ion production continues to grow around the world, can demand keep up?

12 September 2023 Jiayue Zheng Senior Consultant, Energy Storage Supply Chain

https://www.woodmac.com

Demand is growing for lithium-ion batteries to serve electric vehicles and stationary energy storage systems. However, thanks to aggressive manufacturing expansion in recent years, the global battery supply is expected to outstrip this demand for some years to come. Supply will grow by 45% in 2023 alone, amounting to an excess of 1,380 GWh, and while demand will also increase somewhat, the oversupply issue is expected to persist.

This has had a predictable impact on value: raw material prices have been slashed. The spot price of lithium carbonate, for example, dropped by around 50% during the first half of 2023. This unsettling volatility seems to be fostering a wait-and-see sentiment in the market. 

Based on data from over 500 battery manufacturing facilities, our research looks at the global supply forecast from 2023 to 2032. Fill in the form on the right to download an extract from our 'Global lithium-ion battery supply and demand update H1 2023', which explores key manufacturing capacity trends through the supply chain and our predictions for battery components, including cells, cathodes, electrolytes and separators, as well as the capacity investment dynamics of global battery manufacturers by region, in the first quarter of 2023.

Read on for a summary of just a few of the report's key points.

A growing but slowing market  

Regional market demand, government subsidies and restriction and unit capital cost are crucial to capacity investment, and all of these factors are currently impacting the industry. Global battery manufacturers pulled back significantly in the first half of 2023, with construction falling by around 50%. Although our research suggests demand will grow (reaching an estimated 1,080 GWh this year), the gap is set to widen in the coming years. 

Our base case scenario suggests that supply will be sufficient to meet demand in 2032, however in our highest supply scenario, it could outstrip demand by 66%. Should all projects move ahead, oversupply could exceed 2,400 GWh by 2032. Even today, China’s supply gap stands at 558 GWh. As supply consistently keeps pace with, or exceeds demand over the next decade, investment cancellations seem likely. We expect demand for batteries to more than double by 2032, with electric vehicles taking an even larger share of the market than they do today – 84%, compared to 79%. 

Eastern regions still dominate

Asia Pacific leads the world in battery manufacturing, holding about 87% of all key components, and the region is making determined strides in the global market. China’s lithium ion battery export revenue is particularly strong – up 80% year-on-year in the first quarter of 2023 – and the country will continue to control the supply chain for the next decade, maintaining more than 80% of LFP cathodes, electrolytes and separators to 2032 and beyond. 

We are beginning to see changes, however. Localisation policies in the US are starting to make a dent on Asia’s dominance in some areas, and will cause China and South Korea’s share of Ni-based cathode production capacity to fall to 53% and 14% by 2032, respectively.  

The US and Europe encroach 

North America is accelerating local capacity under the Inflation Reduction Act, catching up with China as it curbs local investment. The US announced a capacity of over 350 GWh in the first half of 2023, almost equal to the whole of last year’s capacity. Remarkably, over 50% of the investment are from joint ventures in which Chinese and South Korean manufacturers participate.  It’s clear that North America and Europe will pose a credible challenge to Asia Pacific in the coming years, as they boost their combined share of global battery production capacity to over 30% by 2032. 

ESS and lithium lead the charge 

Production of Stationary Energy Storage System (ESS) – batteries often used for renewable energy – is also set to increase. Capacity will exceed 700 GWh by 2032, sufficient to meet all ESS demand, and once again China will overwhelmingly take the market share, accounting for 89% of capacity. Solar manufacturers in China are actively developing storage businesses and investing in battery production and system integration. Chinese manufacturers have launched 300 Ah-320 Ah prismatic battery cells for grid-scale storage and having signed a long-term agreement of over 100 GWh in H1, especially with overseas clients, their dominance in this market looks secure for some time. 

The market share of lithium iron phosphate (LFP) batteries which are preferred in China ESS market is supercharged, reaching 28% in 2023, and expected to surpass nickel-based batteries in 2030. Production of non-lithium-ion batteries is also scaling up, yet they will not exceed 3% of the market by 2032. 

Learn more 

To learn more about the battery market’s supply and demand trends, fill out the form at the top of the page to download a free extract from our 'Global lithium-ion battery supply and demand update H1 2023' report.

When you download the report extract, you’ll also get access to our charts tracking key metrics such as capacity investment by region and global battery market share rankings by shipment. 

 

Permalink Reply by Skip Peel - Mineral Consultant on September 18, 2023 at 12:18

Standard Lithium Files Technical Report for the South West Arkansas Project

Mon, September 18, 2023 Standard Lithium

EL DORADO, Ark., Sept. 18, 2023 (GLOBE NEWSWIRE) -- Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE American:SLI) (FRA:S5L), a leading near-commercial lithium company, announces that the Preliminary Feasibility Study for the South West Arkansas Project (the “Report”), as announced on August 8, 2023, has been filed.

The Report is available for review under the Company’s profile on SEDAR+ at www.sedar.com and on the Company’s website at www.standardlithium.com/projects/arkansas-smackover. For highlights of this Report, please refer to the Company’s press release dated 8 August 2023.

About the South West Arkansas Project

The South West Arkansas Project (“SWA Project”) is located approximately 15 miles west of the City of Magnolia in southwestern Arkansas. The SWA Project’s Indicated and Inferred Mineral Resource of 1.4 Mt and 0.4 Mt lithium carbonate equivalent, respectively, has some of the highest reported lithium brine concentrations in North America, averaging above 400 mg/L. The Preliminary Feasibility Study demonstrates robust economics, assuming production of at least 30,000 tonnes per year of battery-quality lithium hydroxide beginning in 2027 over a 20-plus year operating life.

The Company anticipates completing a FEED and Definitive Feasibility Study for the SWA Project in 2024 and beginning construction in 2025. Commercial production is expected in 2027, subject to continuing project definition, due diligence, project financing and receipt of future feasibility studies.

About Standard Lithium Ltd.

Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of lithium-brine bearing properties in the United States. The Company prioritizes brine projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. The Company aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully-integrated Direct Lithium Extraction (“DLE”) and purification process. The Company’s signature projects, the Phase 1A Project and the South West Arkansas Project, are located on the Smackover Formation in southern Arkansas near the Louisiana state line, a region with a long-standing and established brine processing industry. The Company has also identified a number of highly prospective lithium brine project areas in the Smackover Formation in East Texas and began an extensive brine leasing program in the key project areas.  In addition, the Company has an interest in certain mineral leases located in the Mojave Desert in San Bernardino County, California.

 

Permalink Reply by Rock Man on September 18, 2023 at 15:24

Some interesting results and facts. They are taking the lead on lithium extraction in this area.

Permalink Reply by Skip Peel - Mineral Consultant on September 18, 2023 at 15:34

The 400 mg/L is an improvement over the 300 mg/L previously stated. It does seem like a long time until first production.  Much will likely transpire in the lithium market between now and 2027.

Permalink Reply by Rock Man on September 18, 2023 at 15:41

And project can easily be scraped if the economics change.

I am still concerned with the "consistency" of lithium concentrations in any area / well. I have seen produced water chemistry change over time in O&G producing wells. Can lithium concentrations also vary over time as any Smackover zone is produced and depleted?

Permalink Reply by Joe B. Lovelace on September 19, 2023 at 6:16

As we keep our eyes on exploration and development of sources of lithium, it's worthwhile to follow articles like this that show a research and training effort for future battery production.

“We can’t afford to fail. I say that for the entire scientific and, ultimately, the commercial enterprise,” Pancrazio said. “We don’t have enough lithium to meet the needs of all the rechargeable technologies that are going to be critical for renewables, the next generation of mobility solutions and even DOD-related activities and infrastructure. Without a doubt, we have to be successful.”

Attachments:

• Department of Defense to invest $30 million in battery tech research at UTD.pdf, 162 KB

Permalink Reply by Skip Peel - Mineral Consultant on September 19, 2023 at 7:03

Thanks, Joe.  Good article.  I think some of our members may not know of the government investments in horizontal drilling and hydraulic fracture stimulation.  George Mitchell and Mitchell Energy are cited quite often but it was government funding that helped to sustain his decade long search to unlock the Barnett Shale and the technical assistance that was provided to finally make shale production economic.  A $30M investment if small but it is for this specific UTD project.

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