Having recently closed a Series C of $145mn bringing your total amount raised to $315 million, why was Lilac founded and what need is it fulfilling?
Lilac was established in 2016 by David Snydacker who recognized a pressing need to boost lithium production from brines, identifying ion exchange as a pivotal technique. Traditional methods, like aluminum absorption, only function efficiently with brines that are both high in lithium concentration and low in impurities. Snydacker’s innovative use of materials science in battery durability led to the development of an ion exchange bead, enhancing the efficiency of lithium extraction from various brine qualities.
Ion exchange is a venerable technology, yet what makes our approach unique is the selective absorption properties of our beads. These beads are placed within ion exchange reactors and are highly selective, absorbing lithium while excluding other metals or salts. This process allows for the brine to be reused by re-injecting it back into the ground after lithium extraction. Our technology integrates seamlessly with standard equipment used in the industry, which simplifies the design and construction of Direct Lithium Extraction (DLE) units, which we are also prepared to oversee.
How does your technology impact the environmental footprint and cost of lithium extraction?
Our technology is particularly transformative in that it unlocks potential in groundwater reserves previously deemed uneconomical due to low lithium concentrations. Our direct lithium extraction (DLE) system, which leverages ion exchange, is not only space-efficient but also cost-competitive. Traditional evaporative methods cost around $4,000 per ton of lithium, whereas hard rock mining can escalate to between $8,000 to $20,000 per ton. Our technology could reduce costs to approximately $5,000 per ton in regions like Argentina and Chile, and slightly higher in North America. This positions our technology favorably within the existing cost curve while drastically reducing the environmental footprint compared to conventional methods.
What are the advantages of using your technology at sites like the Great Salt Lake?
The Great Salt Lake site, with a lithium concentration of about 70 parts per million, alongside other similar sources, can now be tapped efficiently. Our technology significantly differs from traditional methods such as evaporative ponds and hard rock mining, which are not only space-intensive but also environmentally taxing. For example, traditional ponds cover thousands of hectares and contribute to significant water loss through evaporation, a method increasingly restricted due to environmental concerns. Our method, in contrast, operates within a smaller footprint—less than 50 acres—and ensures that water is not consumed but recycled back into the ecosystem.
Is the commercial viability of your product proven?
The commercial viability of our product has been substantiated through extensive testing and scaling. Since our inception, we have evaluated over 70 different brine sources worldwide, consistently extracting lithium at economically viable rates. Our progression from small-scale laboratory tests to large-scale field pilots and demonstrations plants has systematically demonstrated the scalability and effectiveness of our technology. Notably, our most extensive demonstration plant, conducted in Argentina, ran successfully for nine months, reinforcing our readiness to transition to commercial-scale operations.
Given the cost needed to move the project to its next stage, who are you looking to partner with?
We are currently in discussions with a variety of potential partners, including car manufacturers and battery producers, who are particularly interested due to incentives like the IRA credits for building electric vehicles in North America. Additionally, some of these car makers are already investors in our capital stack. Financial investors and private equity firms are also showing interest. These conversations are just beginning, and we anticipate making significant progress in securing the right equity investors over the next six months. On the permitting side, we have had promising discussions with state legislators and administrators, particularly in Utah, which are progressing well.
What is the significance of lithium in the current energy landscape, and how do you foresee its demand evolving?
Lithium is critical not only for electric vehicles but also for energy storage solutions like residential battery storage systems and grid storage, which are becoming increasingly common with the rise in solar panel installations. Over the next decade, we anticipate lithium will remain the predominant battery material due to its high energy density, essential for both mobile and stationary storage solutions. Production of lithium carbonate equivalent (LCE) has dramatically increased from 300,000 tons to a million tons in the last five years, with expectations to triple in the next five years despite market volatility.
As you look toward the future to 2026, how do you see Lilac's impact on the industry?
By 2026 to 2027, Lilac’s technology will have fundamentally transformed the lithium extraction industry.
Our technology not only enhances the productivity of existing high-grade reserves, such as those in the Atacama Desert, but also makes it economically viable to develop lower-grade lithium reserves. This capability will be crucial as the industry looks to diversify and expand lithium sources beyond hard rock mining, which is less sustainable and more limited in scope.
This strategic shift will help meet the soaring global demand for lithium, driven by the expansion of electric vehicles and renewable energy storage solutions.
