North Dakota's Oilfield Brines To Be Tested for Lithium Extraction Innovation

Source: Streetwise Reports 12/12/2024

Volt Lithium Corp. (VLT:TSV; VLTLF:US; I2D:FSE) has announced a collaboration with Wellspring Hydro to test its proprietary direct lithium extraction (DLE) technology in the Bakken formation, North Dakota. Learn more about the groundbreaking field study transforming oilfield brines into a sustainable lithium source.

Volt Lithium Corp. (VLT:TSV; VLTLF:US; I2D:FSE) has announced a field study agreement with Wellspring Hydro to test its proprietary direct lithium extraction (DLE) technology in the Bakken Formation, North Dakota. Supported by an initial US$450,000 grant from the State of North Dakota through its Industrial Commission Research and Renewable Energy program, this field study seeks to validate the viability of extracting lithium from oilfield brine in one of the most significant oil-producing regions in the United States.

Alex Wylie, Volt’s president and CEO, expressed optimism about the collaboration in the news release, “We are excited to be collaborating with Wellspring and the State of North Dakota to trial Volt’s DLE field unit in the Bakken formation. “In addition to our existing field operations in the Permian Basin in Texas with our Strategic Partner, we are proud to be able to demonstrate the capabilities of a second field unit in another significant oil-producing region of the United States.”

Wellspring’s CEO, Mark Watson, highlighted the strategic importance of the location, noting that the Bakken generates approximately 2 million barrels of lithium-infused brine daily, making it the second-largest brine producer in the U.S. Watson stated, “Wellspring and the State of North Dakota have been working with the Volt team for the past several months and are excited to deploy a field unit in the Bakken formation in early 2025.”

This project builds on Volt’s existing operations in the Permian Basin, Texas, and Alberta, Canada, demonstrating its expansion strategy (both of which are with separate strategic partners from Wellspring). The North Dakota study aims to position Volt as a leader in utilizing oilfield brine as a sustainable source for lithium extraction. Volt expects an additional US$50,000 in funding from the grant upon completion of the study and plans to apply for up to US$2 million in additional funding in early 2025.

Lithium Industry: Domestic Innovations and Recycling Challenges

In a report dated November 27, Allied Market Research projected the global lithium-ion battery recycling market to grow at a compound annual growth rate (CAGR) of 36% through 2030, reaching a market size of US$38.21 billion. This growth reflects the sector’s emphasis on reducing reliance on mining and addressing environmental concerns by recovering valuable materials from used batteries. The report highlighted the rise of EVs as a significant driver, with the vehicle segment expected to grow at a 46.1% CAGR. “Recycling ensures valuable materials are recovered, reduces reliance on mining, and minimizes environmental and safety risks,” the report noted.

However, economic pressures in 2024 have tempered some expansion plans. Fastmarkets reported on November 27 that lithium carbonate prices had significantly declined, averaging US$10.56-11.33 per kilogram in November 2024, compared to US$19.91-21.32 per kilogram a year prior. This downturn strained margins for recyclers. Speaking at a conference in The Hague, Nils Steinbrecher, managing director of SK tes EMEA, remarked, “The market is in a dip, and my question is when it will rebound.” Despite these headwinds, Fastmarkets forecasted substantial growth in battery scrap availability, predicting a rise from 96,000 tonnes in 2024 to 252,000 tonnes by 2029.

On November 30, Alex Koyfman emphasized the strategic significance of domestic lithium resources in the United States in a report for Energy and Capital. He referenced the approval of a major lithium project on the Nevada/Oregon border, which could hold up to 120 megatons of lithium ore. Koyfman described this as a pivotal move to reduce U.S. reliance on Chinese-controlled lithium supply chains, noting, “Trump, famous for his pro-oil ideologies, may actually be the biggest supporter, ever, of American lithium independence.” He further observed that post-bubble stabilization in the lithium market suggested an era of “rational, organic growth,” positioning the sector for renewed opportunities.

Volt Lithium’s Strategic Milestones and Future Prospects

Volt Lithium’s ongoing field study in North Dakota is a critical component of its broader strategy to establish itself as a premier lithium producer in North America. As mentioned in their investor presentation, the company’s proprietary DLE technology has achieved a 99% lithium extraction rate during field simulations, and its scalability has been demonstrated with processing capacities of up to 200,000 liters of brine per day at its Field Simulation Centre. These advancements promise efficient, continuous lithium production at significantly reduced costs — estimated at approximately US$2,900 per tonne of lithium carbonate equivalent (LCE). Volt’s U.S. Field Unit is modular, providing the flexibility for continued optimization, modifications, and process improvements. Through the installation of Volt’s Generation 3 equipment at its Field Unit in Texas, recent direct lithium extraction cycle times have been consistently less than 30 minutes, representing a four times improvement in operating capabilities, setting the stage for commercial production in the range of 5,000 to 10,000 barrels per day of brine production by the end of 2024. Volt and its Strategic Partner will continually scale-up its Field Unit in the Permian basin, positioning the company as a low-cost and full-scale commercial producer.

Volt commenced U.S. field operations in the Permian Basin in Texas in September 2024, achieving the significant milestone of first lithium production. In October, Volt produced > 99.5% battery-grade lithium carbonate. The company’s proprietary DLE process has successfully built up an inventory of high-quality eluate (lithium chloride concentrate) that can be converted into a 99.5% pure battery-grade lithium carbonate. Samples of lithium carbonate have been created and verified via third-party testing for review for potential offtake partners. Volt will continue to produce lithium chloride concentrate as well as technical-grade and battery-grade lithium carbonate in the field for the remainder of 2024. [OWNERSHIP_CHART-10857]

In North Dakota, future milestones include the deployment of full-scale commercial units, with initial field operations expected to commence in early 2025. This project, supported by state funding and collaboration with Wellspring Hydro, underscores Volt’s competitive positioning in a market increasingly driven by the demand for locally sourced lithium. The company’s capacity to replicate this model across other oilfields in North America presents substantial growth opportunities, supported by its partnerships with key operators and government agencies.

Ownership and Share Structure

Refinitiv provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 14% of the company.

According to Refinitiv, James Alexander Wylie owns 7.97% of the company, Martin Scase owns 4.53%, Warner Uhl owns 0.81%, Morgan Tiernan owns 0.35%, and Kyle Robert Hookey owns 0.10%.

Refinitiv reports that institutions own less than 1% of the company, as Eagle Claw Investments Pty. Ltd. owns 0.98%.

According to Reuters, the company has 164.72 million shares outstanding and a market cap of CA$43.65 million. It trades in a 52-week range of CA$0.16 and CA$0.49.

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1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Volt Lithium Corp.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: VLT:TSV;VLTLF:US;I2D:FSE, )

Source: https://www.streetwisereports.com/article/2024/12/12/north-dakotas-oilfield-brines-to-be-tested-for-lithium-extraction-innovation.html