Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) backed ElectraLith is set to unveil plans for a further funding round to raise AU$29 million (£15 million) over the coming days.
ElectraLith, which is developing filtration technology for the extraction of lithium without water or chemicals, received backing from Rio Tinto earlier in the year to commercialise the process.
Further funding would see it build a pilot plant at Rio Tinto’s Rincon operations in Argentina, Reuters reported.
“The lithium market is not great, venture capital markets aren’t great, [so] the fact we are about to close this round with an oversubscribed investor base [is] fantastic,” chief executive Charlie McGill said.
He pointed out that sourcing water in regions where lithium mines were situated was a “major problem”, adding ElectraLith’s process could slash costs.
Two other pilot plants are in the pipeline, according to ElectraLith, which is co-owned by IP Group, Rio Tinto and Monash University.