Controlled Thermal Resources Discusses Lithium Demand, Extraction, and Collaborations
Increased offtake agreements between automakers and mineral suppliers and a shift towards more affordable lithium-iron-phosphate batteries for electric vehicles are providing long-term stability for lithium demand, according to Rod Colwell, CEO of Controlled Thermal Resources Holdings. Speaking at the Giga USA 2024 conference organized by Benchmark Mineral Intelligence, Colwell discussed the Hell's Kitchen lithium extraction and geothermal energy project, currently under development in the Salton Sea region of Imperial County, California.
The Hell's Kitchen project, which broke ground in January, combines geothermal energy production with lithium extraction. This project has received funding from automakers, the federal government, and the California Energy Commission. Colwell explained the project's process, where geothermal brine is cooled, problematic minerals are removed, and lithium is extracted before the brine is re-injected back into the formation.
Colwell noted the trend of automakers investing directly in mineral suppliers, with General Motors and Stellantis committing significant funds to secure lithium supplies from Hell's Kitchen. He highlighted different strategies among automakers, with some procuring lithium through third parties like SK On, while others, like GM and Stellantis, manage their own procurement and involve battery manufacturers at later stages.
Regarding the future of lithium demand, Colwell mentioned the industry's shift towards lithium-iron-phosphate batteries due to their cost-effectiveness and simpler production process, which does not require importing nickel or cobalt. He emphasized that this approach would streamline production and be more sustainable in the long run.
Colwell also highlighted the advantages of the permitting process in the Salton Sea region, where a comprehensive environmental impact report has been completed, providing a significant regulatory advantage. Imperial County's proactive approach, supported by a $5 million grant from Governor Gavin Newsom, has streamlined the permitting process, making it more efficient compared to other regions.
Colwell welcomed the involvement of major oil companies like Exxon Mobil and Equinor in lithium extraction. He noted their expertise in metallurgy, large-scale operations, and replication, which can significantly contribute to the industry's growth. According to Colwell, these investments reflect a serious commitment to lithium extraction rather than a superficial greenwashing effort.
This strategic collaboration between automakers, lithium producers, and oil companies is expected to drive significant advancements in the EV and lithium extraction industries, ensuring a stable and sustainable supply chain for critical minerals.
