Abstract:

As an essential material for rechargeable batteries used in electric vehicles and renewable energy storage systems, lithium occurrence and production from novel sources have garnered significant attention. This study investigated the technical and economic feasibility of recovering lithium minerals from brine fluids co-produced from the Montney geologic formation of Northeast BC and the Duvernay geologic formation of West-Central Alberta. The evaluation confirmed that producing lithium from an existing waste stream is a viable option to help address the anticipated mineral supply shortages in North America and globally. The concept of developing a valued commodity from an existing waste stream introduces the potential for adopting more circular economic production methods and facilitating the decarbonization of current operations.

The study utilized geochemical analyses of brine fluid samples collected from operations of the Montney and Duvernay formations to determine the extent of lithium enrichment across the various assets. The production characteristics of existing facility operations were applied to evaluate the scale of the potential opportunity. The study considered the ability for system integration between existing operations and lithium co-production.

Capital and operating cost models developed in this study were based on evaluating representative existing and proposed large-scale brine-based lithium operations and the applicability of Direct Lithium Extraction technology. A Discounted Cash Flow (DCF) model was developed to estimate the total supply costs, associated taxes and royalties, internal rates of return, and technical input parameters as indicators for project viability.

Analysis of more than 160 Duvernay formation brine samples from the Fox Creek area determined significant levels of total dissolved solids (TDS) ranging from 80 to 345 g/L, averaging 191 g/L. These samples, primarily composed of sodium and chloride, revealed a lithium content between 19 and 79 mg/L, averaging 45 mg/L.

In comparison, the analyses of over 225 Dawson Creek area Montney formation brine samples indicated TDS content between 125 and 300 g/L, averaging 223 g/L. Similarly dominated by sodium and chloride, the Montney brine fluids exhibited lithium content between 10 and 80 mg/L, averaging 58 mg/L.

With a 20-year assumed project lifespan and utilizing both the Montney and Duvernay formation brines, the study assessed the after-tax and royalty internal rate of return (IRR) for the production of lithium hydroxide monohydrate and the production of lithium carbonate.

The study's conclusion indicates that extracting lithium from an existing waste stream and refining it into battery-grade products is economically viable, considering projected commodity prices and current supply-demand gaps. Utilizing existing infrastructure for lithium production from waste introduces circular economic practices, fostering sustainable mining practices and enhancing operations' Environmental, Social, and Governance (ESG) performance.

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Mr. Adam Leece

Biography