Volt Lithium (VLTLF) has made a major move towards commercial lithium production with the deployment and installation of its first Field Unit in the Permian Basin, Texas. This development, after over a year of discussions with key oil companies in the region, marks a significant milestone for the company.
“Our team is thrilled to share that we have successfully deployed, installed and commenced function-testing of the Field Unit on-site at our strategic partner’s Permian Basin location in West Texas,” said Alex Wylie, President & CEO of Volt Lithium. “The introduction of this initial Field Unit marks the achievement of another critical milestone of our strategy to become one of North America’s first commercial producers of lithium from oilfield brine.”
This new Field Unit boasts a processing capacity exceeding 200,000 liters (around 1,250 barrels) of oilfield brine per day, effectively doubling the company’s previous processing capability. This substantial increase aligns with Volt’s goal of reaching full commercial production. The unit’s modular design allows for future scalability. Volt plans to further increase processing capacity by adding modules or optimizing lithium extraction times, ultimately aiming for a commercial production level of 100,000 barrels per day.
“Our upfront cost to go full-scale commercial is $20 million for phase one production plans. To scale up, you just build more. Our footprint this summer will be 50 feet by 50 feet. The full-scale commercial might be 100 feet by 150 feet,” Wylie previously stated to Benzinga.
Volt successfully completed tests at its Field Simulation Centre in Calgary, Alberta. Notably, the company’s ability to scale up its extraction process while maintaining a competitive cost is a major advantage. According to Wylie, even when working with low-grade brine, production costs only $2,900 per ton – significantly below the current spot price of around $9,600 per ton, based on Shanghai’s exchange closing price on August 26.
“It is a $6 billion cash flow opportunity within the next three to five years, and we’re a $20 million company,” Wylie told Benzinga in June. Since then, the stock has skyrocketed 240%, reaching CA$0.48 per share.
Volt Lithium’s deployment of its first Field Unit signifies a substantial leap forward in its quest to become a major player in North America’s lithium production landscape. The company’s ability to extract lithium from oilfield brine at a competitive cost positions it for significant growth and potential success in the rapidly expanding lithium market.
