International Battery Metals Ltd. (IBAT) has announced a temporary suspension of its lithium extraction operations at US Magnesium LLC (US Mag). This decision stems from the current challenging market conditions, specifically the weakness in lithium carbonate prices.
IBAT is pleased with the performance of its modular direct lithium extraction (MDLE) plant, which successfully processed lithium-containing waste salts derived from magnesium production, generating high-purity lithium chloride eluent. This eluent was then further processed by US Mag’s on-site facilities to produce lithium carbonate meeting their specifications. However, after extensive discussions, both companies concluded that operating economics were negatively impacted by the current lithium carbonate price environment, leading to the decision to suspend operations until market conditions improve.
IBAT expresses gratitude for its collaboration with US Mag and remains open to potential future partnerships. Iris Jancik, IBAT’s Chief Executive Officer, stated, “While we observed stability and moderate price recovery in the lithium carbonate market during the first half of the year, significant price weakness has emerged since June. Nonetheless, we remain confident in the long-term growth of the lithium market and anticipate more favorable conditions in 2025. It’s important to note that our joint operation with US Mag successfully achieved the targeted lithium carbonate purity and produced an exceptionally high-quality product.”
IBAT previously disclosed operational challenges during the MDLE Plant’s startup phase, including damage to filters and equipment, resulting in extended downtime. These issues have been addressed through necessary repairs and are not a contributing factor to the decision to idle the MDLE Plant.
The company is currently evaluating options for its MDLE Plant, emphasizing its immediate availability, high-quality output, and modular design, making it attractive to customers seeking rapid development of their lithium resources.
IBAT is an advanced technology company committed to environmentally responsible lithium extraction methods. Their patented MDLE Plant allows for quick deployment to resource holders’ production sites. IBAT actively collaborates with stakeholders, including those with oilfield brines, brine aquifers, and industrial customers with brine byproducts. The modular design of IBAT’s MDLE Plant offers significant cost savings to customers, and its proprietary direct lithium extraction technology reduces operating expenses by selectively extracting lithium from brine while effectively removing contaminants.
