Schlumberger N.V. (SLB) has made a significant breakthrough in the sustainable production of lithium. The company announced the successful demonstration of its innovative technology at its Clayton Valley, Nevada, plant, marking a pivotal moment in the quest for responsible lithium sourcing.
Schlumberger’s integrated solution offers a comprehensive, end-to-end process that includes cutting-edge impurity treatment and concentration technologies to produce high-purity lithium carbonate or hydroxide. This approach is designed to accelerate the market availability of responsibly sourced lithium products, a crucial component for the expanding electric vehicle (EV) and renewable energy industries.
What sets Schlumberger’s technology apart is its remarkable efficiency. The company’s solution extracts lithium from brine 500 times faster than traditional methods, achieving a verified lithium recovery rate of 96% from brine, all while utilizing only 10% of the land typically required. In contrast, traditional lithium extraction processes often involve vast land usage, water depletion, and the generation of harmful residues. Schlumberger’s solution minimizes water consumption and returns processed brine to its source, significantly reducing environmental impact.
Gavin Rennick, president of SLB’s New Energy business, highlighted the significance of this achievement, stating, “SLB’s demonstration plant in Clayton Valley proves our unique integrated approach to produce scalable quantities of lithium in the fastest, most economical and sustainable way for today’s market. This accelerates deployment of viable commercial-scale facilities for high-quality lithium products that are the backbone of our electrification economy.”
Schlumberger’s recent financial performance further underscores its commitment to innovation and growth. In July, the company reported a 13% year-over-year increase in second-quarter 2024 revenue, reaching $9.139 billion, surpassing analysts’ expectations. Adjusted earnings per share (EPS) also rose 18% year-over-year to $0.85, exceeding the consensus estimate of $0.83.
Investors interested in gaining exposure to Schlumberger can consider investing in the VanEck Oil Services ETF (OIH) and the IShares U.S. Oil Equipment & Services ETF (IEZ). SLB shares are up 0.25% at $39.69 premarket on Wednesday.
