SYDNEY, AUSTRALIA: Lithium Energy Limited, an ASX-listed company focused on lithium brine projects in South America, has announced that it has signed a binding agreement with Lanshen, a Chinese company that provides direct lithium extraction (DLE) technology and plant manufacturing, to build a lithium carbonate plant at its Solaroz project in Argentina.

The plant, which will have a capacity of 3,000 tonnes per annum of battery grade lithium carbonate, will be funded and constructed by Lanshen at their sole cost. The plant is expected to be commissioned in the second half of 2024, subject to receipt of all local approvals and permits.

The plant will be built at the Mario Angel concession, a discrete stand-alone concession within the Solaroz project that is ideally suited for DLE test purposes. The plant will not impact on the broader Solaroz concessions, for which engineering studies evaluating both pond evaporation and DLE are still ongoing.

Lithium Energy will have the right to purchase the plant once constructed, if it meets pre-agreed acceptance criteria. Lanshen has also expressed its interest in investing and operating a larger plant of 20,000 tonnes per annum or above at the Solaroz project.

The Solaroz project is located next to Allkem’s lithium production facility in the Salar de Olaroz basin, in the heart of South America’s world renowned Lithium Triangle. The project covers an area of 12,000 hectares and has a 90% interest held by Lithium Energy.

Lanshen is a leading provider of DLE technology and plant manufacturing, with industrial scale commercial DLE plants currently in operation. Its major shareholders include China Minmetals and Softbank Capital.

Lithium Energy’s CEO, Mr. David Frances, commented: “We are delighted to partner with Lanshen, a world-class company with proven expertise in DLE technology and plant manufacturing. This agreement is a significant milestone for Lithium Energy and demonstrates our commitment to advancing our Solaroz project in Argentina. We look forward to working with Lanshen to deliver a successful demonstration plant and potentially a larger scale operation in the future.”

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