What did the early days of CleanTech Lithium look like?
Back in 2017, when we put the cornerstone of the company, we were able to take full control over a basin in the Lithium Triangle in Chile, given that it was considered a low-grade lithium source. From there onwards, we started exploring and, as time passed, we acquired our second basin. After some testing, we agreed it was the right time to show our methods to the world, highlighting the direct lithium extraction (‘DLE’) technology that does not imply evaporation and produces exclusively cleaner lithium. We are taking the lithium out of the brine with the help of a resin and from the response we have been receiving, after sending samples to companies around the world, it seems like we are on the right path.
What does it mean to be a green lithium supplier?
Besides aiming to use 100% renewable energy at commercial production, being a green lithium supplier translates into leaving a smaller footprint thanks to the fact that we are reinjecting the spent brine back into the basin aquifers.
What we refer to as green lithium means there is minimal impact on the environment, no aquifer depletion and significantly less water usage over other methods of extracting lithium. This may well create a premium product for car and battery manufacturers looking for a cleaner supply chain.
In addition to this, it also means training and hiring people in the region to reduce the carbon emissions resulting from miners flying across Chile or further afield to reach the extraction sites.
Furthermore, we are striving to create a diverse spectrum of employees, and, at the moment, we actually have 54% women and 46% men across our teams.
Whether we like it or not, mining is an essential part of life, all the products that we are using are being touched by this sector. Helping OEMs to have access to clean lithium for the EV batteries and bringing our contribution to this overall transition is keeping us motivated every day. As is the positive impact we can have on the indigenous communities, whose know how is important (and inevitable) in lithium extraction. Out of this collaboration, they can benefit from schooling, work opportunities, Starlink connections and more.
What is the main challenge that CleanTech Lithium is facing at the moment?
We are trying to have a Silicon Valley type of approach and we calculate risks in advance for all the projects we are developing. Up to now, we have been able to establish relationships with four major car manufacturers, two battery producers, two mining companies, and household names form Japan have invested in our projects. Chile is the only South American country that produces lithium to have a free trade agreement with the U.S. and Europe. However, China has also acquired a lot of our infrastructure here, so there is a lot of competition going on, with everybody wanting to have access to the lithium provided by junior companies like ourselves. This pressure to produce more and faster can be seen as a challenge in this fast-changing market context.
How far ahead are you in the development of your projects and what do you need in order to be able to start production in 2026?
At the moment, we are in the pre-feasibility phase and we need to complete the feasibility study to be able to use the results for the environmental impact assessment, that includes community consultations and is finalized with the approval to start the project per se. By July, we aim to scale up the production of lithium, from the meager present quantities to up to one tonne per month. We are finishing the second drilling campaign that assures enough lithium for our initial plans for 20,000 tonnes per year at Laguna Verde, and we are already having conversations about offtake agreements. Thankfully, we are well financed, as we managed to raise GBP 12,6 million in late 2022. Moreover, we did a pre-IPO at 20p in 2022 for GBP 4 million, which allowed us to keep drilling and pay for the listing at the beginning of March last year.
Although we are navigating difficult socio-economic and environmental times, we are confident that CleanTech Lithium will be able to alleviate some of the troubles that we are facing as a civilization by our combined experience and ambition to be the leading supplier of green lithium. Making one of the sources for EVs as sustainable as the solution intends to be in order to decarbonise our global economies.
