ElectraLith, a lithium technology start-up backed by mining giant Rio Tinto, is set to finalise a funding round in the coming week to raise A$27.5m ($17.8m), reported Reuters, citing the company’s CEO Charlie McGill.

The fundraising effort comes amid a challenging global lithium market.

The company is innovating with a waterless and chemical-free filtration technology to extract lithium from brine deposit. This could be key in regions such as Chile's Atacama desert.

ElectraLith’s direct lithium extraction (DLE) technology, dubbed DLE-R, is expected to accelerate the production timeline of the metal, which is crucial for electric vehicle batteries and electronics.

McGill was quoted by the news agency as saying: “The lithium market is not great, venture capital markets aren’t great, (so) the fact we are about to close this round with an oversubscribed investor base... for us that is fantastic.”

Currently, ElectraLith holds commercialisation rights for the DLE-R process, which utilises dual membranes to filter lithium from brine and convert it into lithium hydroxide. The residual brine is reinjected into the aquifer, ensuring minimal environmental impact.

ElectraLith is currently seeking ways to scale its membrane technology, aiming to retain its efficiency for larger-scale projects, McGill said.

Proceeds from the upcoming funding will support development of the company's first pilot plant at Rio Tinto's Rincon operations in Argentina.

With two additional pilot plants in the pipeline, ElectraLith is approximately one year away from piloting the technology.

In August 2024, ElectraLith announced successful production of battery-grade lithium hydroxide from various brine sources using its DLE-R technology.

This included the creation of 99.9% pure lithium hydroxide from a brine with less than 60 parts per million lithium, achieved without the use of water, chemicals, and with minimal energy consumption.

ElectraLith is owned by IP Group, Rio Tinto and Monash University.