Lithium Refining

Lithium refining has become an increasingly important process in the global economy, particularly as the demand for electric vehicles (EVs) and renewable energy storage continues to rise. Lithium, a key component in lithium-ion batteries, is crucial for powering a wide range of devices, from smartphones and laptops to electric vehicles and grid storage systems. As the need for these batteries grows, so does the demand for lithium and the refinement processes that transform it into a usable form.

One of the primary sources of lithium is spodumene, a lithium-rich raw material predominantly found in Australia. In recent years, the price of Australian spodumene has increased more than tenfold, reflecting the immense global demand for lithium. Refining companies like Livent have established lithium refining and chemicals manufacturing facilities in various locations, including Argentina, North America, England, and China, to supply EV automakers and other industries with lithium products.

As lithium demand is expected to increase dramatically from around 500,000 metric tons in 2021 to three million to four million metric tons by 2030, lithium refining technologies and facilities such as Tesla’s planned lithium refinery in Texas will play a significant role in meeting the world’s growing needs for lithium-based products.

Lithium brine pools aerial view

Lithium Sources

In this section, we will explore the different sources of lithium and their global distribution. Lithium, a critical component in the production of rechargeable batteries and green energy technologies, is mainly derived from two primary sources: brines and spodumene.


Brines are underground saline water reservoirs that contain lithium. They are mainly found below the surface of dried-up lake beds, with the largest reserves located in South America, particularly in Chile and Argentina. The extraction process involves pumping the brine to the surface, where it is evaporated in large ponds, leaving behind lithium and other salts. This method is considered more cost-effective and environmentally sustainable than hard rock mining.


Spodumene is a lithium-bearing mineral commonly found in hard rock deposits. The refining process for spodumene typically involves leaching the lithium using a combination of sulfuric acid and heat. Although this method is more energy-intensive than brine extraction, it can yield higher concentrations of lithium. Australia is the leading producer of spodumene lithium, with numerous large-scale mines operating in the country.

Global Lithium Deposit Locations

The global distribution of lithium deposits is concentrated in a few key regions. The lithium triangle, encompassing parts of Chile, Argentina, and Bolivia, contains the world’s largest reserves of lithium brines. In fact, Chile and Argentina are the top two lithium-producing countries in the world, with their vast salt flats known as salares hosting most of their lithium reserves.

Australia dominates the spodumene lithium market and boasts the largest hard rock lithium resources globally. In North America, the United States is actively seeking new lithium sources to meet growing clean energy demands. In recent years, the potential for lithium extraction from deposits in Maine has sparked interest, but local opposition to mining activities may present challenges in tapping into these valuable resources.

Overall, the worldwide demand for lithium is expected to continue growing as green energy technologies gain momentum. By understanding the diverse sources, methods, and locations of lithium production, we can better navigate the challenges and opportunities in the pursuit of a sustainable energy future.

Refining Processes

Brine Extraction and Concentration

The refining processes of lithium involve the extraction and processing of the element from brine or spodumene deposits. One common method is brine extraction and concentration. This process starts by pumping the brine, which contains lithium, from underground reservoirs. The brine is then concentrated using solar energy in evaporation ponds, where unwanted impurities like potassium, sodium, and magnesium are gradually removed through a series of crystallization processes.

During the concentration stage, the lithium content in the brine increases, and eventually, lithium salts precipitate out as the liquid evaporates. The lithium salts are further processed and purified to produce high-purity lithium carbonate or lithium hydroxide, which can be used in various energy storage applications like lithium batteries.

Spodumene Conversion

Another major source of lithium is spodumene, a lithium-bearing mineral. The refining process for spodumene typically starts with mining the hard rock deposits, followed by thermal treatment and water leaching to release lithium values into the solution. Through a series of chemical conversions, the lithium is transformed into a form suitable for further refining.

Once the lithium is extracted, it can then be refined into either lithium carbonate or lithium hydroxide. These compounds are crucial for the manufacturing of lithium-ion batteries used in electric vehicles, consumer electronics, and grid-scale energy storage systems. Both techniques, brine extraction and spodumene conversion, contribute to the global production of lithium, meeting the demand for this essential element in the growing clean energy market.

Direct Lithium Extraction

Direct Lithium Extraction (DLE) is a set of emerging technologies aimed at improving the efficiency, sustainability, and environmental impacts of lithium production. The conventional lithium extraction process involves the evaporation of lithium-containing brines and is both time-consuming and water-intensive. DLE methods seek to overcome these limitations by directly extracting lithium ions from brine solutions using innovative methods, as opposed to traditional evaporation techniques.

Technological Innovations

One notable example of technological innovation in DLE is the development of direct lithium to product (DLP) processes. DLP processes allow for the rapid extraction of lithium from brine sources, shortening the overall mining process, and reducing the environmental impact. By enabling a more sustainable production of lithium, DLP processes can help support the growing demand for lithium-ion batteries in electric vehicles and other green energy technologies.

Another significant advancement in DLE is the integration of geothermal energy for lithium extraction. Geothermal energy offers a renewable and low-carbon source of energy that can aid in reducing the environmental impact of lithium production. By harnessing the heat from geothermal sources, lithium extraction plants can generate clean energy, which can then be used to power the DLE process and decrease the reliance on fossil fuels.

In addition to these innovations, researchers and companies are also developing various technologies that can accelerate the DLE process further, reduce water usage, and minimize waste production. By doing so, DLE has the potential to transform the lithium extraction industry, making it more sustainable and environmentally friendly.

Overall, innovations in DLE, such as direct lithium to product and the integration of geothermal energy, show great promise in improving the lithium extraction process. As the demand for lithium continues to rise, the adoption of these emerging technologies will play a crucial role in meeting the global need for lithium in a more sustainable and environmentally conscious manner.

Economic Factors

Production Costs

Lithium refining is an essential process to meet the increasing demand for lithium in various industries, such as electric vehicle (EV) batteries and renewable energy storage solutions. Production costs play a critical role in the economics of lithium refining. There are two main methods of lithium extraction: mining from spodumene concentrate and extracting from brine resources.

Mining lithium from spodumene concentrate typically involves higher upfront costs, but may yield higher-quality lithium. On the other hand, extracting lithium from brine resources, typically found in South America’s Andean region, can be more cost-effective as it requires less energy and water resources. However, environmental concerns may arise due to the excessive usage of water in the extraction process.

Global Market Dynamics

The global lithium market is heavily influenced by China, as it dominates the lithium refining industry. China’s control over the market presents potential risks in terms of supply stability and pricing power. To counterbalance China’s influence, other countries are investing in domestic lithium production and refining capabilities.

The U.S. Department of Energy (DOE) has recently invested millions of dollars to support America’s lithium production potential, reflecting the growing importance of this strategic resource. This initiative aims to boost national lithium production and refining, reducing dependence on foreign sources.

Furthermore, the Inflation Reduction Act of 2022 has supported the economics of establishing lithium refining facilities in the U.S., including new refineries in Texas. As countries make significant investments in lithium refining, it is evident that this strategic resource is vital for achieving a clean energy transition.

Applications and Industries

Battery Production

Lithium is a crucial component in the manufacturing of batteries, especially for electric vehicles (EVs) and consumer electronics like laptops. The high energy density and lightweight properties of lithium-ion (Li-ion) batteries make them the preferred choice in various industries. As the demand for EVs continues to grow, the need for lithium in battery production will also increase, further driving the expansion of the lithium refining industry.

Other Uses

In addition to its applications in battery production, lithium has a variety of other uses in various industries. Some notable examples include:

  • Glass and ceramics: Lithium is commonly used as a flux, helping to reduce the melting point and viscosity of materials in the glass and ceramic production process. This considerably lowers energy consumption during manufacturing and enhances the final product’s durability.
  • Metallurgy: Lithium compounds are used as additives in the production of aluminum, copper, and other metals. They help refine the metal, reduce the grain size, and improve the metal’s strength, ductility, and corrosion resistance.
  • Lubricants: Lithium is an essential ingredient in the production of grease. Due to its excellent thermal stability and resistance to corrosion, lithium-based greases are widely used in various industries, including automotive, aerospace, and heavy machinery.

The growing demand for lithium in these industries highlights the importance of refining and processing this vital resource. As lithium production becomes more efficient and environmentally friendly, these applications will continue to rely on high-quality sources of lithium to meet their needs.

Major Companies and Partnerships

Key Players

One of the major companies involved in lithium refining is Albemarle Corporation, a global leader in the lithium-ion battery industry. Albemarle specializes in the production of lithium chemicals, including lithium metal, salts, and feedstock, which are essential components for lithium-ion batteries. They are also involved in the mining of minerals such as boron.

Another important player in the lithium refining market is Livent Corporation, a company specialized in producing high-quality lithium products. Livent utilizes a unique method of extracting lithium from underground brine reservoirs through solar evaporation. Additionally, the company focuses on the production of lithium chemicals and minerals, including lithium compounds used for renewable power.


Several strategic partnerships have been established in the lithium refining industry. For instance, Albemarle has formed a partnership with Mineral Resources Limited, an Australian mining company, to develop the Wodgina hard rock lithium project. This collaboration aims to meet the increasing demand for lithium chemicals in various applications, including electric vehicles and energy storage systems.

Similarly, Livent Corporation has joined forces with FMC Corporation, a leading chemical company, to enhance the lithium refining process. FMC provides Livent with essential chemical inputs such as soda ash, which is a key component in the production of lithium chemicals.

Strategic partnerships have also been formed between lithium refining companies and mining companies specializing in the extraction of other essential battery components, such as nickel, cobalt, and graphite. These partnerships are crucial in ensuring a sustainable and reliable supply of raw materials for the lithium-ion battery industry.

Another area of collaboration within the lithium refining industry is recycling. Companies like Tesla have established partnerships to develop lithium recycling facilities that recover and reuse valuable materials from spent lithium-ion batteries. This not only reduces the environmental impact of battery production but also helps secure a stable supply of lithium and other crucial materials for the rapidly growing lithium-ion battery industry.

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