Arizona Lithium (ASX: AZL, AZLO, OTC: AZLAF) has entered into an agreement with Koch Technology Solutions (KTS) to deploy a Li-Pro commercial-scale direct lithium extraction (DLE) unit in Phase 1 production at the Prairie Lithium Project. The company has also executed a non-binding memorandum of understanding (MOU) for a commercial licence to use KTS’s Li-Pro technology beyond Phase 1.
The Li-Pro unit is a quad pod system and will be capable of producing 150 tonnes per annum (TPA) of lithium carbonate equivalent (LCE). The lithium produced will support market development, with battery-grade samples currently being tested by interested parties in Asia and North America. Phase 1 will process brine at a rate of approximately 1,000 cubic metres per day.
The Li-Pro unit will be deployed at Pad #1 as part of a commercial-scale proof-of-concept, demonstrating brine production, DLE processing, and brine disposal. The system is designed to allow for production expansion through the addition of modular units. Subject to successful operation, further commercial facilities may be deployed at Pad #2, Pad #3, and other locations that are currently being assessed.
The unit is expected to be delivered and commissioned in the second quarter of 2025.
Koch Technology Solutions, a subsidiary of Koch Inc., is a leading provider of technology licensing solutions, specialising in process technologies that improve operational efficiency and capital productivity. KTS has partnered with Arizona Lithium to introduce its Li-Pro system at commercial scale, following positive test results using Duperow brine from Pad #1. These tests indicated approximately 98% lithium retention and an average 99% rejection of impurities such as calcium, magnesium, potassium, and sodium.
Koch has made several investments in lithium-related technologies, including:
- Standard Lithium partnership: In 2021, a subsidiary of Koch invested US$100 million in Standard Lithium Ltd., which specialises in innovative lithium extraction technologies.
- Li-Cycle investment: Koch announced a US$100 million investment in Li-Cycle, North America’s leading lithium-ion battery recycler.
- Compass Minerals collaboration: Koch Minerals & Trading invested US$252 million in Compass Minerals to support the development of lithium brine resources at Utah’s Great Salt Lake.
Arizona Lithium plans to use the Li-Pro unit to produce lithium chloride, which will then be further refined on-site into battery-grade lithium carbonate. The process will utilise lithium-selective media provided by KTS and reverse osmosis water sourced from the company’s existing brackish water well at Pad #1.
This deployment represents one of the largest known DLE facilities and provides the framework for scaling up production across the Prairie Project. Upon successful operation of the initial unit, Arizona Lithium expects to proceed to Phase 2, which will involve expansion at Pad #1, followed by Phase 3, where the model will be replicated at additional pad locations.
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