Lithium Energy inks deal for battery-grade plant at Argentina project (updated)

Argentina Lithium and Energy

20/06/2023 24:12

(Adds details on deal in paragraphs 2, 4 and 5, explanation on
DLE in paragraph 3)
       June 20 (Reuters) - Lithium Energy  LEL.AX  on Tuesday
signed an agreement with Xi'an Lanshen New Material Technology,
allowing the Chinese company to build a battery-grade lithium
plant at the Australian-listed firm's Solaroz project in
Argentina.
    Xi'an Lanshen will employ its proprietary direct lithium
extraction (DLE) technology, and the plant will be capable of
producing up to 3,000 tonnes per annum of battery-grade lithium
carbonate, Lithium Energy said in a statement.
    While DLE technologies vary, they are comparable to common
household water softeners and aim to extract about 90% or more
of the lithium from brines, compared to about 50% using ponds.
    Under the terms of the deal, Lanshen will supply, build and
initially operate the plant at its own cost, while Lithium
Energy will be responsible for securing all necessary approvals
and permits.
    The companies are targeting the plant's commissioning by the
second half of 2024, and Lithium Energy also has the right to
purchase the plant once constructed.

 (Reporting by Jaskiran Singh in Bengaluru; Editing by Jonathan
Oatis and Jamie Freed)
 ((Jaskiran.Singh@thomsonreuters.com;))