The US Department of Energy’s (DOE) Loan Programs Office (LPO) has announced a conditional commitment of up to $1.36bn to ESM ATLiS (ATLiS) to support its lithium hydroxide production facility in Imperial County, California.

ATLiS is a subsidiary of EnergySource Minerals (ESM).

This funding aims to support the construction, equipping and operation of the California facility, which will extract lithium hydroxide from geothermal brine.

The facility is projected to have a lithium hydroxide production capacity of up to 20,000tpa, which could support around 52 gigawatt-hours of lithium-ion battery production per year.

ATLiS submitted its application to the LPO in May 2023.

The ATLiS facility will employ DLE technology to unearth lithium from Salton Sea geothermal brine.

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Project ATLiS is said to be the first to implement DLE technology at a commercial scale in the US, using a proprietary method called ILiAD, developed by ESM ILiAD.

This technology has been piloted with various brine resources across the US and internationally, including in Utah, Texas and Nevada.

The facility will be located adjacent to an existing geothermal plant, which will provide lithium-rich brine sourced from a geothermal field more than 1.9km beneath the surface.

The brine will be cleared of impurities and lithium will be extracted using ILiAD technology, while the lithium-depleted brine will be reinjected from the geothermal plant.

This brine also contains minerals such as zinc and manganese, which ATLiS plans to extract and sell.

ESM has engaged with the local community since 2021, with the project expected to create up to 300 construction jobs and 71 operations jobs.

If approved, the loan would be part of the LPO’s Advanced Technology Vehicles Manufacturing Loan Program to support US manufacturing of advanced vehicles and materials that improve fuel efficiency.

The conditional commitment indicates DOE’s intent to finance the project, subject to certain technical, legal, environmental and financial conditions being met.

This project aims to provide the US battery market with a secure domestic lithium source.

The initiative aligns with efforts to strengthen supply chains that are crucial for national energy security and cut down dependence on economic competitors.