ELi Process Promises Major Cost Cuts as Neometals and Rio Tinto Collaborate
Neometals’ joint venture Reed Advanced Materials has signed a non-binding MoU with Rio Tinto to collaborate on advancing the ELi Process, a lithium hydroxide production technology promising significant cost and environmental benefits.
- Non-binding MoU between Reed Advanced Materials and Rio Tinto for ELi Process validation
- ELi Process offers major operating cost reductions by minimizing chemical reagent use
- Successful pilot trials converting Rio Tinto’s Rincon brines to battery-grade lithium hydroxide
- Potential for Rio Tinto to fund optimization and demonstration plant design
- MoU sets stage for commercial licensing targeting Rio Tinto’s lithium brine assets
Strategic Collaboration in Lithium Processing
Neometals Ltd and Mineral Resources Limited’s joint venture, Reed Advanced Materials (RAM), has taken a significant step forward by signing a non-binding Memorandum of Understanding (MoU) with Rio Tinto. This agreement aims to explore collaboration opportunities to validate and potentially commercialize the ELi Process, a patented lithium hydroxide production technology that promises to disrupt the conventional lithium refining landscape.
The ELi Process uses electricity to convert lithium chloride brines into lithium hydroxide monohydrate (LHM) with a dramatically reduced requirement for bulk chemical reagents compared to traditional chemical precipitation methods. This innovation could translate into a step-change reduction in operating costs and environmental footprint for lithium producers.
Pilot Success and Next Steps
RAM has already demonstrated the ELi Process’s viability through successful pilot trials using Rio Tinto’s Rincon brines. These trials, conducted in 2023 and 2024, produced high-purity battery-grade lithium hydroxide monohydrate crystals and validated key performance metrics such as membrane durability and power efficiency over extended operation.
Under the MoU, Rio Tinto and RAM plan to collaborate on optimization test work and update process design criteria, potentially leading to the design and cost estimation of a pilot or demonstration-scale plant, likely situated in Argentina. Rio Tinto’s involvement could include funding these development stages, reflecting their interest in integrating ELi with their existing direct lithium extraction technologies.
Commercial Potential and Licensing Model
The ELi Process is positioned for commercial deployment through a licensing business model. RAM intends to license the technology to lithium producers, enabling them to achieve lower operating costs and reduced carbon footprints. The MoU contemplates extended field trials and the negotiation of evaluation licenses, with the possibility of a binding commercial agreement to apply ELi to Rio Tinto’s lithium brine assets.
Importantly, the MoU is non-binding except for confidentiality and intellectual property provisions, meaning no guaranteed commitments exist yet. However, the collaboration signals strong industry interest in ELi’s potential to enhance lithium refining efficiency and sustainability.
Broader Industry Implications
Neometals’ Managing Director, Chris Reed, highlighted the strategic fit between ELi and Rio Tinto’s lithium portfolio, emphasizing the technology’s role in supporting the global energy transition. With lithium demand surging due to electric vehicle and battery growth, innovations like ELi that reduce costs and environmental impact could reshape supply chains and competitive dynamics.
As the lithium sector evolves, partnerships between technology developers and major miners will be critical to scaling new processes. The ELi-Rio Tinto MoU exemplifies this trend, combining technical innovation with the scale and resources needed for industrial validation and commercialisation.
Bottom Line?
The MoU with Rio Tinto marks a pivotal moment for ELi, but the path to commercialisation hinges on successful pilot scale-up and binding agreements.
Questions in the middle?
- Will Rio Tinto commit funding for the demonstration plant and extended field trials?
- How will ELi’s operating cost advantages compare in large-scale commercial deployment?
- What timeline can investors expect for ELi’s transition from pilot to licensed technology?
