Direct Lithium Extraction (DLE), a technology that could potentially double lithium yields from brine projects, is set to revolutionise the mining industry much like the shale oil boom did for the energy sector, according to research from Goldman Sachs (NYSE:GS).
DLE technologies are currently being tested at scale, with a selection of projects already under commercial construction.
Despite existing challenges around scalability and water consumption, DLE could become widespread between 2025 and 2030, particularly in lithium-rich regions such as Chile and Argentina, Goldman's analysts reckon.
They suggest that the capital intensity of DLE is on par with traditional pond projects. Higher upfront costs could be offset by lower unit costs, with a breakeven point at operational expenses below US$5,700 per tonne, assuming a recovery rate over 80%, they reckon.
The firm's research further indicates that DLE could widen the lithium brine cost curve rather than steepen it, with an average project likely falling into the second or third cost quartile.
The implementation of DLE could extend lithium market surpluses or reduce deficits.
If implemented by 20-40% of Latin American brine projects, increasing recovery from about 50% to around 80%, DLE could add an additional 70,000-140,000 tonnes per annum of lithium carbonate equivalent (LCE) from 2028, increasing the global raw supply by approximately 8%.