Lanxess and Standard Lithium to Collaborate on Lithium Project
Supply Agreement for Lithium Extraction
Lanxess, a global specialty chemicals company, has entered into a cooperation agreement with Canadian firm Standard Lithium. This collaboration involves a lithium project at Lanxess's facility in El Dorado, Arkansas, USA. Under the agreement, Lanxess will supply brine rich in lithium to Standard Lithium, should the latter commence industrial-scale production of battery-grade lithium. Additionally, Lanxess will lease out land and provide essential infrastructure services for Standard Lithium's production setup. The specifics of this cooperation are currently in the negotiation phase.
Lanxess's Strategic Focus in Electromobility
Lanxess's participation in this project is part of its broader strategy to tap into the burgeoning electromobility market. By supplying lithium-rich brine, Lanxess aims to enhance the profitability of its specialty additives segment without taking on additional risks or costs. This move marks a shift in Lanxess's approach, as it now concentrates on supply and infrastructure support instead of direct financial investment in lithium projects or lithium sourcing itself.
El Dorado Site: Bromine and Lithium Potential
The El Dorado site is notable for its bromine production, derived from a large natural salt brine reservoir. Bromine and its derivatives, extracted here, are predominantly used in the electronics and construction industries as flame retardants. The lithium extraction project presents an opportunity for Lanxess to diversify its offerings and meet the rising demand for lithium, essential in battery production.
