Energy Analytics Energy Transition

Securing domestic supply of lithium

byGraham Bain

In last week’s issue of Energy Transition Today, we discussed the significant drop in solar capture prices in California over the past five years. This decline presents a valuable opportunity for solar projects to utilize co-located battery storage, charging them with affordable solar power during daylight hours and discharging the stored energy in the evening to capitalize on higher peak pricing. From co-located battery storage to electric vehicles, we see rising demand for battery production and battery metals like lithium, and by 2035 we anticipate lithium demand to increase by 350,000 tonnes from 2019 levels.

Currently, 95% of the global lithium supply is mined in just four countries: Australia, Chile, China and Argentina. The U.S. only contributes 1%, illustrating the need to secure local production as demand increases. Recent government policy changes offer hope, with the Defense Production Act allocating up to $1 billion per year to boost domestic mineral development and the Inflation Reduction Act introducing a 10% critical minerals tax credit on mining and refining.

However, bringing new mines online can take decades and evaporative salars have geographical limitations due to their need for extremely dry environments. This is where direct lithium extraction (DLE) comes into play. Currently being tested for commercial viability, DLE has the potential to extract lithium from large volumes of low-concentration lithium brines. If successful, DLE could unlock almost limitless domestic lithium production, either from dedicated brine resources or from the approximately 3 billion barrels of oilfield wastewater produced monthly in North America.

FIGURE 1 | Yearly Lithium Production and Revenue Potential

yearly-lithium-production-and-revenue-potential
Source | Enverus Foundations, Alberta Geological Survey.

Figure 1 shows the potential for lithium extraction and revenue from wastewater for five operators in the Delaware Basin. With a total of 29,000 tonnes/year, generating $600 million in additional revenue at a $20,000/tonne spot price, the implications are clear. If DLE proves successful, it could not only meet domestic lithium demands but also generate significant revenue in the process.

Highlights from Energy Transition Research

A Simple Guide to Energy Transition Metals

This report presents a supply and demand outlook for metals that will be crucial in supporting the decarbonization of the energy system.

A Simple Guide to Synthetic Fuels

What will it take for synthetic fuels to play a significant role in the replacement of hydrocarbons in the transportation sector?

The Inflation Reduction Act – Impact on CCUS

This report explores the impacts of the Inflation Reduction Act on the development of CCUS projects in the United States.

Energy is changing. Connect weekly with the ideas that are leading the way.

Button - Subscribe to Energy Transition Today

About Enverus Intelligence®| Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Click here to learn more.

Graham Bain

Graham Bain

Graham joined Enverus Intelligence Research (EIR) in 2020 with the acquisition of RS Energy Group. As lead of the subsurface group on the Energy Transition Intelligence team, Graham creates intelligent connections between the subsurface, emerging energy and carbon innovation technologies through a deep understanding of geosciences and the energy transition. Prior to EIR, Graham worked as an analyst for the Alberta Energy Regulator with a focus on the Athabasca oil sands, and as a geologist in training for a Calgary-based exploration company.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

gen-ai-blog
Generative AI
ByJimmy Fortuna

That’s right – the Instant Analyst technology that we announced just two weeks ago is coming to PRISM. The Intelligence Vault already has Instant Analyst features enabled for a group of trial customers, helping them get faster answers to complex questions...

energy-transition-group-of-professionals-meeting
Energy Transition
ByIvana Petrich

As the world debated the complexities of achieving net zero at last year’s COP28, regulatory pressures continued to increase in the U.S as the EPA announced its final Quad O rules aimed at sharply reducing methane emissions.

Enverus blog - Sundown on California solar power premiums
Power and Renewables
ByKatherine Paton-Ilse

As solar generation continues to dominate the renewable energy industry, siting projects is becoming increasingly difficult.

Enverus Press Release - Blue hydrogen: Greening the bottom line
Energy Transition
BySmayan Sharma

Hydrogen technology has received a lot of attention over the past few years due to ambitious decarbonization targets and transformative funding programs.

Enverus Press Release - The surprisingly balanced global LNG market
Energy Analytics Trading and Risk
ByEnverus

he natural gas industry is facing many challenges lately. Prices are trending towards historically low levels, and this economic instability has attracted attention.

Enverus News Release - Utility growth prospects: Quantifying long and short opportunities
Power and Renewables
ByAmanda De La Rosa

In the rapidly evolving landscape of the power market, the interconnection queue stands as at a critical juncture for new energy projects seeking to integrate with the existing grid infrastructure.

Enverus News Release - Enverus launches Learning & Development program to empower energy data professionals
Learning and Development
ByEnverus

In today’s fast-paced and ever-evolving business landscape, continuous learning and development are essential components for both personal and professional growth. At Enverus, we understand the pivotal role that education plays in empowering our valued customers and internal teams to thrive....

ofs
Intelligence
ByJared Kugler

Operators across the Lower 48 continue to deploy innovative redevelopment techniques to increase their production to stifle the decrease in high-graded new drill inventory.

energy-transition
Energy Transition
ByJeffery Jen

There has been a battle for CO2 in the Midwest with two major CO2 pipeline projects, Navigator Heartland Greenway and Summit Carbon Solutions, looking to capitalize on the 45Q PTC by targeting the low capture cost CO2 emissions from the...

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Get Energy Transition Research updates straight to your inbox by filling out the form below.

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert