What distinguishes Volt from other companies in the lithium extraction sector?
Volt Lithium is recognized for developing a pioneering technology that extracts lithium from oil field brines, particularly focusing on low concentration brines. We are rooted in the belief that the oil and gas industry is a latent leader in lithium extraction. Through our innovative methods, we discovered that numerous oil fields across North America are already producing lithium; however, the extraction process is yet to be optimized. Volt not only spearheaded the technology but also owns an asset in northwest Alberta. In our recent pilot in 2023, we achieved over 90% extraction recoveries with brine of 34 parts per million (“ppm”) concentration, marking a significant milestone in our journey.
This breakthrough technology is characterized by two vital components: removing contaminants from oil field brine and the adept extraction of low concentration brines. Through extensive research and development, we achieved a remarkable advancement in cleaning the brine before lithium extraction, addressing challenges presented by contaminants like hydrogen sulfide. Our pilot plant, which simulated commercial operations, confirmed the scalability of our technology and its applicability to low concentration lithium in oil field products. The ability to extract lithium from oil fields already producing billions of barrels of water daily underscores our technology’s breakthrough status.
Is Volt Lithium’s proprietary technology exclusive to your operations, or is there a plan to make it accessible to other companies?
Currently, our focus is on our asset in the Rainbow Lake area in Alberta, Canada. After the success of our pilot, we are now conducting a preliminary economic assessment (PEA) to unveil the asset’s value and concurrently building a demonstration plant. The establishment of this plant isn't merely to showcase Volt’s technology but aims to serve as a testing ground for oilfield brines across North America. We envision this as a partnership opportunity rather than a technology licensing venture, buoyed by the positive outcomes and the impending launch of our demonstration plant.
By the close of 2023, we anticipate our plant to be fully operational. This development will facilitate the design of commercial units, underpinned by Volt’s proven technology and high extraction results. We aim to develop our asset in northwest Alberta to reach a production capacity of 20,000 tons per annum. The opportunity landscape extends beyond Volt’s immediate asset, with sights set on the vast potential across North America where existing infrastructure and permitting processes present a significant advantage.
How swiftly do you anticipate the transition from the planning phase to commercial production, and where do you see the most substantial opportunities for lithium extraction in North America?
We are on track to have our plant operational by the end of 2023. This will not only enhance Volt’s capacity to test brines from across the continent but also expedite the journey to designing commercial units. Our strategy aligns with the sentiments expressed by major oil companies who are recognizing lithium extraction as a core competency, a development we attribute to the rapid advancements made by juniors like Volt in technology and commercial applications.
Our focus is on both Canada and the US, particularly targeting large plays known to contain lithium across the two nations. The existing infrastructure and permitting processes in these regions are invaluable, essentially enabling the extraction of lithium that’s already produced. This operational efficiency promises a significant leap in lithium supply for North America, aligning with the growing demand fueled by an ever- expanding electric vehicle market and other lithium-dependent industries.
Given the increasing demand for lithium, do policy makers grasp the potential supply security issues? How are they addressing this?
Indeed, the surge in demand for lithium is undeniable, particularly from car manufacturers amid the booming electric vehicle market. Security of supply remains a critical challenge, but the prospect of expanding applications is promising as North America boosts its lithium production capacity. However, a dichotomy exists between the policy makers’ drive for increased domestic supply and the intricate and often lengthy permitting processes, especially for lithium mines.
We believe the solution lies in extracting lithium from already permitted and producing sources, such as the oil and gas industry. The significant opportunity for lithium supply from this sector could potentially alleviate policy and environmental friction. The ability to harness lithium from existing oil and gas operations, which are safely regulated, could hasten North America’s stride towards lithium self-sufficiency, ultimately fulfilling the soaring demand from diverse economic sectors including automotive and household applications.
How has the investment community responded to your innovative approach to lithium extraction?
As our approach to lithium extraction is relatively new, the investment community is coming up the curve on our process. While there’s considerable interest, many investors are more familiar with hard rock mining, a proven process . We understand this reservation so are working diligently to transition into initial commercial production and showcase Volt’s favorable cost structure and economics. We believe that demonstrating the viability and profitability of our methods will stimulate increased interest and investment.
Recently, we successfully raised C$6.8 million (~US$5.0 million), an indication of the burgeoning interest in our technology. As we advance into commercial production and showcase our innovative extraction processes, we’re confident of garnering more attention and investment. Our unique approach, combined with a demonstrated proof of concept, is poised to tilt the scale of investor confidence in our favor.
What is the future vision for Volt Lithium, and what are the anticipated milestones both in the near term and long term?
In the short term, we’re focused on operationalizing our demonstration plant by the end of 2023 and completing our PEA. The PEA is crucial for outlining the costs and potential returns, especially as we aim to build our asset up to 20,000 tonnes per annum. This will also serve as an effective showcase for our innovative technology. Volt’s long-term vision encompasses securing partnerships with more oil and gas companies, where we can function as the extraction group for their lithium production.The oil and gas industry has a history of outsourcing specialized tasks, and lithium extraction is unlikely to be an exception.
Our technology and expertise position us as the preferred partner, and we see significant opportunity to scale beyond the initial 20,000 tonnes per annum as the market evolves and expands.
What would you like the general public to understand about the lithium industry and your sector?
The transition to the lithium industry is imminent and essential. We anticipate it will outlast the oil and gas sector, given that the life for our initial asset exceeds 100 years, based on our published resource report. There’s abundant lithium available, and as the world transitions to cleaner and greener energy sources, a natural shift towards lithium production is inevitable. We’re positioned at the cusp of this transition, ready to harness the immense opportunities that lie ahead.
The ongoing energy transition and the pivotal role of lithium in this shift underscore the industry’s significance. Our initiatives and innovations are not transient; they represent foundational steps towards a sustainable energy future characterized by efficiency, innovation, and environmental consciousness.
