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Permalink Reply by Sam Goodman on July 12, 2024 at 15:26

This article was from 2019, when they referred to it as "cell salt" and US Mag was just getting into the lithium business.  

https://www.tooeleonline.com/articles/news/us-mag-breaks-ground-on-...

"We’ve been stockpiling cell salt for 50 years and now we have developed in-house the technology to extract the lithium from the cell salt,” Thayer said.

Cell salt is a by-product of the process of magnesium production. Over its 50 years of operation, US Magnesium has accumulated around 1.5 million tons of cell salt that looks like stacks of dirt on US Magnesium’s property.

The cell salt contains 23% lithium. The combination of an increased demand for lithium batteries to power cell phones, computers and other battery powered devices, along with US Magnesium’s proprietary process for extraction, has made it financially feasible to extract and sell the lithium from the cell salt, Thayer said.

The lithium in the cell salt is in the form of lithium chloride. The extraction process starts with separating the lithium chloride from other material in the cell salt and concentrating the lithium. The lithium chloride is then converted into lithium carbonate, which is then purified and pulverized into a fine powder."

It's my assumption IBAT's extraction process has improved the % with their newer DLE technology.

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Permalink Reply by Skip Peel - Mineral Consultant on July 13, 2024 at 3:50

Thanks.  It's unclear how US Mag's cell salt would work in an IBAT DLE plant.  I suspect that the cell salt is the product of a evaporative brine pond.  A different process in 2019 from the current IBAT plant.

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Permalink Reply by Lisa on July 12, 2024 at 18:26

I don’t know enough to know if my questions and curiosities are too simple for these discussions, but I’m willing to take the risk.

As a landowner, if I sign a lease, would I have much say in the process of extraction, for instance DLE? I very much want my land unharmed and/or restored! How to I educate myself regarding processes of extraction and restoration? Will the type of process of extraction benefit me financially?

Would my relationship and engagements always be with a leasing company, who is representing a chemical/energy resource company who is needing and wanting lithium from under my property. Would the chemical/energy company be choosing the method of how to get the lithium and get it to market? They might choose John Burns’s IBAT DLE? I assume the method of extraction would be a selling point leasing agents would discuss with me, right?

What should I know and care about to make good decisions as a good steward of my land and its beauty and good decisions financially?

Players:
-Landowner
-Leasing agent/company
-Chemical/energy company
-Method of extraction/company chosen by chemical/energy company

Right?

As a simple landowner, should I not worry about all this for 2-5 years? 5-10 years?

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Permalink Reply by Skip Peel - Mineral Consultant on July 13, 2024 at 3:58

Lisa when you sign a lease, the language in that lease controls all the variables.  That is why landowners need the services of an experienced O&G/Mineral attorney or firm.  And be advised that your lease would be transferable.  You would have no say in who might acquire the lease and thus the rights to development as defined in that lease.  In O&G, it is usually best to be leased to the operator of the mineral estate. That's a good question to ask because there will be "investors" looking to offer brine leases.  A tactic that is common throughout the history of O&G. What you need to do is give your attorney a list of what is important to you.  How the surface will be used or not used.  How you would be protected and compensated in the case of a spill.  The language used to cover these concerns is not a do it yourself project.  The wording is critically important to enforce your wishes.  For that reason an experienced attorney who knows the "case law"  knows how those lease clauses must be worded to hold up in court if it comes to that.  I don't think you have to wait more than two years.  Most, if not all, of the questions important to landowners and lease language should be answered by then.

Stay tuned.

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Permalink Reply by Lisa on July 13, 2024 at 4:04

Very encouraging and very helpful. So I need to add “qualified attorney” to my players list!

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Permalink Reply by Sam Goodman on July 13, 2024 at 5:00

Lisa, now that you have your ducks in a row, you may be looking to contact John Burba and the team at IBAT to begin discussions for the future.  You can contact them through this form on their website: https://www.ibatterymetals.com/contact-us

Having discussions and gathering information (plus running it by your attorney like Skip said), are the best ways to become informed of your best options for the future.

I'm excited for you and wish I owned land in the area!

Sam

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Permalink Reply by Sam Goodman on July 15, 2024 at 7:01

https://www.thomasnet.com/insights/ibat-lithium-extraction-technology/

IBAT’s New Lithium Extraction Technology will Change the Game

Kat de Naoum

7/15/2024

International Battery Metals (IBAT) has introduced a new lithium filtration technology aimed at electric vehicle (EV) batteries. 

This new tech could potentially make direct lithium extraction (DLE) faster and cheaper, benefitting EV manufacturers and addressing some concerning issues in the industry such as high water consumption.

IBAT’s DLE technology

IBAT, based in Houston, TX, is an American company specializing in advanced, portable, and scalable lithium extraction technology for use in EV batteries. IBAT’s new method recycles over 98% of the water used, solving the problem of high water consumption typically associated with lithium extraction. 

Traditional lithium extraction methods, like evaporation ponds and open-pit mines, use a lot of water and generally take a long time. IBAT’s DLE technology is more efficient, extracting about 90% or more of the lithium from brines compared to about 50% with traditional methods.

IBAT’s Plants 

As an extra perk, IBAT’s smaller, portable plants can be quickly built and moved to new locations, reducing construction costs. Each plant costs $50–60 million and takes about 18 months to build and reach production.

IBAT started working on this technology in rural Utah with the aim of increasing lithium production to 5,000 metric tons per year within four weeks.

Lithium and DLE Industries

Lithium prices have dropped over 80% in the past year, leading to layoffs in the industry. Despite this, IBAT has confidence in its technology and business model, and plans to expand its plants globally. 

The DLE industry is expected to grow significantly in the near future, potentially reaching $10 billion in annual revenue in the next decade, presenting a large opportunity for IBAT to scale and commercialize its plants.

IBAT’s New Lithium Extraction Technology—Conclusion

IBAT’s new lithium extraction technology could drastically change the lithium industry by making the process faster, cheaper, and more environmentally friendly.

The president of US Magnesium, Ron Thayer, has already chosen to go with IBAT’s technology, saying that he already views the company as “a commercial lithium producer,” and Exxon Mobil is also reportedly considering doing the same. 

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Permalink Reply by Skip Peel - Mineral Consultant on July 15, 2024 at 8:00

Thanks, Sam.  One consideration that never appears in IBAT related articles is what is done with the brine after the lithium is extracted.  The statement, "... recycles over 98% of the water used, solving the problem of high water consumption typically associated with lithium extraction." is referring to the water used to release the lithium from the extraction column.  So yes, the IBAT system does recover the vast majority of that fresh water.  In cases using subsurface brine such as the Smackover here in the Ark-La-Tex, the risks of brine spills remains as does the risk from H2S.  DLE is certainly more environmentally friendly than evaporation ponds and hard rock mines but it is not without risks.  Risks that should be addressed in individual brine leases with the assistance of a qualified, experienced attorney.  One with O&G and mineral experience.

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Permalink Reply by Sam Goodman on July 15, 2024 at 13:14

Skip,

When it comes to the US Magnesium site, after processing, it's my assumption the brine will just be relocated back to the current location on their property, minus the lithium, where it has been stored for the last 50 years.  I believe this was the process they had started but were extracting only 23% of the lithium from the cell salt or brine, thus is why they partnered with IBAT to recover a higher percentage of lithium.  

Brine reinjection will be required in the Ark-La-Tex region, but more research on the process will have to be investigated.  Do you know how the reinjection process works, can you send me information?  I assume it's similar to O&G but would be reinjecting a clean sand/gravel type mixture.

This form may be helpful at 3.1: https://dxi97tvbmhbca.cloudfront.net/upload/user/image/Ezama-Hoyos-...

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Permalink Reply by Skip Peel - Mineral Consultant on July 15, 2024 at 15:41

Sam, I haven't speculated on the process at US Magnesium because I don't think it has any relevance to how DLE would work here in the Ark-La-Tex. In the areas of current interest here, there should be plenty of SWD injection wells with capacity for early disposal efforts. Also plenty of tanker truck companies designed to haul produced water. Disposal is a significant cost but millions of gallons of produced water are transported here each week and there have been few problems other than the occasional over zealous tanker truck driver. I think they are paid by the load as with timber trucks. We also have plenty of available geologic formations that are good injection reservoirs and companies that specialize in SWD. H2S on the other hand requires on site treatment with an amine plant. I think those plants are mobile and there should be a number available for the early needs. There are too many unknowns at this point to know what makes an economic commercial DLE site. I suspect that may become more clear by the end of the year.

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Permalink Reply by Skip Peel - Mineral Consultant on July 17, 2024 at 6:37

Big Oil is Quietly Investing in the Lithium Revolution

By Haley Zaremba - Jul 11, 2024, 4:00 PM CDT

• Big Oil companies are investing heavily in lithium production in response to soaring demand for the mineral in clean energy technologies.
• China currently dominates the global lithium market, but the West is looking to break its monopoly.
• The U.S. government is supporting domestic lithium production to reduce reliance on China and secure its clean energy future.

Big Oil is quietly investing in the renewable revolution – not through solar and wind power, but through lithium. The ‘white gold’ is an essential ingredient in a laundry list of clean energy technology components, most notably the lithium-ion batteries used in electrical vehicles and for short-term energy storage – an essential stop-gap for variable renewable energy production. 

Just last month, ExxonMobil inked a preliminary deal to provide lithium to South Korean electric vehicle battery manufacturer sk On. Just months before that, the firm began drilling for lithium extraction in Arkansas. And according to Exxon insiders, this is just the beginning. ExxonMobil’s Dan Holton recently told the Economist that a “material” part of the $20 billion that the oil supermajor has earmarked for low-carbon investments between 2022 and 2027 will go directly to the lithium sector. “By 2030 the company hopes to produce enough lithium to supply 1m electric vehicles a year,” the Economist reports.

Though lithium prices have stumbled lately, this dip hasn’t seemed to spook investors, as lithium is expected to generate high rates of return for its investors as clean energy manufacturing giants around the world scramble to shore up supply chains while the green energy transition heats up. The International Renewable Energy Agency (IRENA) estimates that lithium demand for battery-making alone is expected to increase by a factor of ten over the decade between 2020 and 2030. A 2023 report from Popular Mechanics calculated that “an electrified economy in 2030 will likely need anywhere from 250,000 to 450,000 tonnes of lithium.” To put that sum in perspective, “In 2021, the world produced only 105—not 105,000—tonnes.” 

Politics aside – money talks. And whether or not Big Oil is ready to give up the ghost of fossil fuels, they are ready to jump into the deep end of lithium production. "What we're seeing right now in lithium is the sentiment is bearish," Exxon's Lithium Global Business Manager, Patrick Howarth, told Bloomberg in an interview on the sidelines of the Fastmarkets Lithium Supply and Battery Raw Materials Conference in Las Vegas. "We know the world urgently needs significantly more lithium than it's producing today."  

As such, companies are looking to get into lithium from a number of angles, including opening up new mines, extracting the valuable element from the oil and gas industry’s wastewater, and squeezing more revenue out of lands already owned by these firms where oil and gas have long since run dry. 

Putting the formidable weight of Big Oil behind lithium production in the West could have major implications for global clean energy markets. Currently, the market is all-but monopolized by China. Beijing alone controlled nearly ten percent of global lithium reserves and a whopping 72% of lithium refining capacity as of 2022. And Xi Jinping’s government is hard at work inking more and more lithium supply deals in emerging countries around the world, and in South America’s so-called ‘lithium triangle’ in particular. 

The United States has been trying to break into the South American lithium market for years now, but has hit significant hurdles posed by China’s already considerable presence and mistrust of dealmaking with the United States. The United States government has also put considerable funds into ramping up domestic lithium production, notably in Utah. Indeed, the Biden administration has offered more than $407 million for domestic exploration and production of lithium through the Inflation Reduction Act. But there is still only one functioning lithium mine in the country, and other prospective projects are still fledgling and woefully inadequate to stand up to China any time soon.

But if oil supermajors, with all of their bargaining power, deep pockets, and long arms of corporate influence, get increasingly involved in lithium production in the United States, this could provide the West with a much more even playing field in the clean energy competition with China. 

By Haley Zaremba for Oilprice.com

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Permalink Reply by Skip Peel - Mineral Consultant on July 24, 2024 at 14:29

International Battery Metals (IBAT) Commences Operations of World’s First Commercial Modular Direct Lithium Extraction (DLE) Plant and First Commercial DLE Plant in North America

July 25, 2024

https://batteriesnews.com/international-battery-metals-ibat-commenc...

International Battery Metals (IBAT) Commences Operations of World’s First Commercial Modular Direct Lithium Extraction (DLE) Plant and First Commercial DLE Plant in North America.

 International Battery Metals Ltd. (CSE: IBAT), today announced it has commenced operations of its commercial proprietary modular direct lithium extraction (DLE) plant in Utah – an industry landmark representing the first lithium produced from the only modular DLE operation in the world and the first commercial DLE operation in North America.

The commercial facility outside Salt Lake City, Utah, is co-located at the operations of US Magnesium LLC (US Mag) and is extracting lithium from a byproduct magnesium chloride/ lithium chloride brine derived from historic magnesium production. IBAT’s modular DLE system, currently situated on about one-acre, is in production and providing lithium chloride to U.S. Mag. The next step for IBAT is to expand production by installing additional columns on the same DLE modular platform with a target of significantly increasing capacity.

John Burba, founder and chief technology officer of IBAT, said:

This achievement is momentous for IBAT and a harbinger for an industry-transformation to significantly boost lithium production on a more cost-effective and sustainable basis, clearing a path for supplies of lower-priced, high-quality lithium for EV batteries and large-scale grid backup battery installations.

“This kicks off a U.S. lithium production renaissance and creates the potential for a sea change in global lithium supplies.”

This milestone is a culmination of over four decades of John’s work in lithium extraction, including the invention of the first lithium absorbent, used in the world’s first DLE plant at Hombre Muerto in Argentina for FMC Technologies, which has been in continuous production since 1998.

This breakthrough is expected to reshape the lithium industry due to several advantageous of IBAT’s patented technology:

• Speed to market: The modular design can bring lithium to market in approximately 18 months, from the time construction is initiated at a fabrication facility to the time of production onsite, compared to several years’ time (5-7 years) for a conventional stick-built DLE plant at a location.
• Low cost: Expected to be among the lowest capex and opex in the industry.
• Scalable, agile and brine agnostic: The modular system’s small footprint can be installed at a variety of lithium brine resources around the world, including formations with active or inactive oil and gas operations. The system is easily scalable by adding modules for expansion.
• High-quality lithium: IBAT’s DLE technology selectively extracts lithium ions via absorption with a proprietary crystal structure, resulting in a lithium-chloride solution with the requisite feedstock purity to produce battery-grade lithium. The technology has been independently verified by SLR and Mehos Consulting to extract more than 97% of available lithium from Smackover brine.
• Sustainability: IBAT’s proprietary absorbent does not require chemicals in the extraction process. The technology extracts lithium from brine sources and returns the lithium-depleted brine back to its source. Due to the plant’s advanced water recovery rate of up to 98% of water recycled, IBAT’s technology is highly protective of sensitive water resources, based on Smackover brine testing by SLR and Mehos.

At the Utah operation, upon acceptance testing IBAT will receive royalties from US Mag from lithium sales as well as payments for equipment rental based on lithium prices and performance.

This operational milestone follows the recent appointment of incoming IBAT CEO Iris Jancik, who starts in her new role mid-August to lead the company’s commercial expansion. To build out its operations, IBAT is in discussions with large industrial companies, including automakers, as well as oil and gas majors and brine-resource owners.

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