News

LiTHOS Technology and Sand Spirit Collaborate to Build Lithium Hydroxide Pilot Production Facility in Alabama

Darin Carroll

September 6, 2023

min read

Article Highlights

Unique Southeastern U.S. Facility: LiTHOS Technology's 'Crimson Tide' Lithium Hydroxide Pilot Production Facility in Alabama is the first of its kind in the Southeastern United States, enhancing LiTHOS' capabilities in lithium pre-treatment and Direct Lithium Extraction (DLE).
Strategic Location and Proximity to Key Partners: The facility's location near major automobile manufacturers and the Smackover brine reservoir provides a strategic advantage for production and offtake opportunities, fostering collaboration and market growth with industry leaders.
Collaborative Partnership and Track Record: LiTHOS Technology's collaboration with Sand Spirit LLC brings valuable engineering expertise and permits to rapidly establish the facility as a lithium hydroxide producer. Sand Spirit's track record in scaling patented technologies adds to the project's potential for success.

LiTHOS Technology LLC, a subsidiary of LiTHOS Energy Ltd (CSE: LITS) , has signed a term sheet with Sand Spirit LLC to construct the 'Crimson Tide' Lithium Hydroxide Pilot Production Facility in Alabama. This facility will be the first of its kind in the Southeastern United States and will play a crucial role in enhancing LiTHOS' capacity for customer pre-treatment and Direct Lithium Extraction (DLE) demonstration programs. The strategic location of the facility near major automobile manufacturers and the Smackover brine reservoir provides significant advantages for production and offtake opportunities.

Strategic Location and Facility Overview

The 'Crimson Tide' Lithium Hydroxide Pilot Production Facility will be strategically located in Bessemer, Alabama, adjacent to Birmingham and only 30 miles away from the University of Alabama. The facility consists of three buildings, each with its own office, laboratory, and warehouse space. The buildings range in size from 6,000 to 42,000 square feet and are equipped with necessary safety features such as fire extinguishers and eye-wash/safety showers.

Production Process

The facility will selectively pre-treat raw continental brines, concentrate lithium chloride using Direct Lithium Extraction (DLE), and upgrade the concentrate into a final battery-grade product of lithium hydroxide monohydrate (LiOH H2O). This process involves several key operations, including storage of raw, intermediate, and processed brines, pre-treatment processing systems, lithium chloride concentration processing systems, DLE processing systems, and lithium chloride treatment and refining activities.

Benefits of the Strategic Location

The strategic location of the 'Crimson Tide' facility in Alabama offers several advantages. Firstly, it is situated next to major automobile manufacturers such as Mercedes-Benz US International, Inc., Honda Manufacturing of Alabama, LLC, and Hyundai Motor Manufacturing Alabama, LLC. This proximity allows for easy access to potential customers and enhances the opportunities for production offtake.

Moreover, the facility is in regional proximity to the Smackover brine reservoir, which is the most prospective lithium-enriched brine reservoir in the US. Several companies, including ExxonMobil, Standard Lithium, Galvanic Energy, TerraVolta, and Vital Energy, Inc., are actively developing lithium projects in the area, further increasing the potential for collaboration and market growth.

Partnership with Sand Spirit

LiTHOS Technology has partnered with Sand Spirit LLC for the development, construction, ownership, and operation of the 'Crimson Tide' facility. Sand Spirit brings valuable engineering expertise, a large complex, and necessary environmental permits to the collaboration. The partnership aims to quickly establish the facility as a producer of lithium hydroxide monohydrate (LiOH H2O) and leverage LiTHOS' patent-pending pre-treatment to LiOH-H20 process. Scott Taylor, CEO of LiTHOS, expressed confidence in the partnership and highlighted the potential of the facility to meet the growing demand for lithium products.

Track Record of Sand Spirit

Sand Spirit is led by Rusty Sutterlin, Ph.D., and Mark Tegen, Ph.D., two seasoned chemical engineering entrepreneurs with extensive experience in various fields, including organic materials, inorganic materials, biofuels, synthesis, extraction, separations, biomass, rare earths, and patent law. They have a demonstrated track record of successfully maturing patented technologies from bench to pilot to commercial scale rapidly. Some of their notable successes include the development of a supercritical alcoholysis project for natural vitamin E production and a soap carbonate project for the conversion of waste products from refining edible cooking oils into renewable fuel or chemical raw materials.

Project Phases and Future Plans

The collaboration between LiTHOS Technology and Sand Spirit is based on a non-binding indicative term sheet, and both parties will work towards negotiating and entering into a joint development agreement (JDA) within 180 days. The JDA will outline the governance structure and the responsibilities of each party for the development of the facility across three project phases.

Phase 1 involves the development of a site development strategy, including the selection of a target source brine, volume of brine to be processed, and the location for the processing plant. Phase 2 focuses on site contracting and implementation, which includes completing front-end loading designs and engineering, negotiating definitive agreements, and developing a comprehensive lithium marketing and distribution strategy. Finally, Phase 3 culminates in a final investment decision (FID) and the construction, commissioning, and placement into service of the facility.

LiTHOS Energy Ltd: Sustainable Lithium Production

LiTHOS Energy Ltd is committed to delivering sustainable lithium production without the use of evaporation ponds. The company's patent-pending electro-pressure membrane process and method, called AcQUA™, enables the recovery and concentration of lithium chloride from aqueous sources. With a fully commissioned brine processing facility in Denver, Colorado, LiTHOS Energy is focused on processing continental brines from strategic resource owners in the United States, Argentina, and Chile.

Conclusion

The collaboration between LiTHOS Technology and Sand Spirit represents a significant step towards establishing a lithium hydroxide production facility in Alabama. The 'Crimson Tide' facility's strategic location, partnership with Sand Spirit, and LiTHOS' expertise in sustainable lithium production position the project for success in meeting the growing demand for lithium products. With the increasing focus on electric vehicles and renewable energy storage, the 'Crimson Tide' facility is poised to play a crucial role in the lithium supply chain and contribute to the advancement of clean energy technologies.

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