Oilfield services giant SLB launching lithium extraction technology

Texas-based oilfield services giant SLB is launching a proprietary direct lithium extraction system to advance its foray into lithium as it prepares for future increases in demand for the battery metal.

Oil companies dipped their toes into the lithium business when prices skyrocketed in 2023, but the price has since collapsed. However, SLB said it expects strong demand in the long term and that its technology will be ready when that happens.

SLB has developed a demonstration plant in Nevada's Clayton Valley to test its direct lithium extraction (DLE) technology, which reached a lithium recovery rate of 96% from brines. The company is ready to deploy its DLE system to plants with a capacity of 10,000 metric tons per year, according to Moira Duff, SLB's director of external communications.

"The companies with this strategic vision understand that capital projects take years to develop and thus will continue to invest in developing the lithium supply to meet the demand in a few years," Duff said Sept. 11 in an email to S&P Global Commodity Insights.

SLB is entering the lithium industry after oil behemoths Saudi Arabian Oil Co. and Exxon Mobil Corp., along with peers Occidental Petroleum Corp. and Abu Dhabi National Oil Co., outlined plans to add lithium to their portfolios.

A slump in lithium prices driven by weaker electric vehicle sales has hit some operating mines hard and could impact some companies' development plans. The lithium carbonate CIF Asia price slumped 84.4% to $10,400 per metric ton on Sept. 4, down from a three-year high of $66,500/t recorded Feb. 22, 2023. The lithium hydroxide CIF Asia price plummeted 85.3% to $10,550.00/t on Sept. 4 from a three-year peak of $72,000.00/t on Feb. 22, 2023.

However, Duff said current lithium prices have not changed the demand outlook for the battery metal, which is expected to rise in the coming years due to the energy transition.

"Today, we are engaging with customers to customize our technologies to specific locations," Duff said.

SLB touted the sustainability of its DLE technology, which could produce lithium from brine 500 times faster than conventional methods while using only 10% of the land, according to a Sept. 10 announcement.

Its DLE system uses less water and returns the used brine to its source after processing. The company noted that the conventional evaporation process uses a lot of land and leads to significant water waste.

SLB added that it takes only hours for its DLE solution to extract lithium from brine and convert it to technical-grade lithium carbonate, while evaporation methods can take up to 18 months with a lower recovery rate of 50% or less.

After completing the DLE testing program, SLB said it is now qualified under a 2019 earn-in agreement with Pure Energy Minerals Ltd. to acquire 100% ownership of the Clayton Valley lithium project in Nevada.