Revolutionizing Lithium Extraction: Major Advances in DLE Technology Propel U.S. Production Growth

1. Volt Lithium Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
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* Disclosure for the quote from the Clive Maund article published on December 20, 2024

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Volt Lithium Corp. (VLT:TSV; VLTLF:US; I2D:FSE) has announced significant advancements in its U.S. field operations, scaling up its Direct Lithium Extraction (DLE) technology to process 2,500 barrels per day (bbls/d) of lithium-infused oilfield brine. This represents one of the largest operational DLE field units in the industry, capable of processing approximately 480,000 liters daily. 

This marks a doubling of capacity from 1,250 bbls/d earlier this year, making the company's Generation 4 field unit one of the largest operational DLE field units in the industry. The unit now processes approximately 480,000 liters of brine daily, a significant step toward Volt's near-term goal of reaching 10,000 bbls/d with the commissioning of its Generation 5 field unit in January 2025. The new unit will incorporate advanced drainage and acid recovery systems, boosting processing capacity and lithium concentration while reducing cycle times and operational costs.

These advancements come as Volt continues to capitalize on the lithium-rich Permian Basin, which produces approximately 19 million barrels of oilfield brine daily, positioning it as a critical source for domestic lithium supply. With recovery rates reaching up to 98% from brines with concentrations as low as 25 mg/L, Volt has successfully built an inventory of lithium chloride eluate, which is being converted to 99.5% battery-grade lithium carbonate for evaluation by potential offtake partners. These developments are paving the way for commercial production in 2025, with plans to scale operations to 100,000 bbls/d in the Permian Basin.

"The Permian Basin is globally significant, currently producing approximately 19 million barrels of lithium-infused brine per day, making it one of the largest potential sources of lithium in the United States," explained Volt CEO and President Alex Wylie in the news release. "With the scaling-up of our field operations, we continue to accelerate the company's trajectory for growth to becoming a significant North American lithium producer." 

In addition to its Permian Basin operations, Volt is expanding into North Dakota, supported by grant funding from the state. The company has purchased equipment for a new field unit, which is expected to be deployed in the first half of 2025. Additional grant applications, including one for US$2 million to support field trials, are anticipated in early 2025. Volt's strategic use of existing oilfield infrastructure allows it to accelerate deployment timelines and minimize capital expenditures, giving the company a competitive edge in scaling operations.

As Volt advances its technology and operational capacity, it believes it is emerging as a key player in the North American lithium market, targeting significant production levels and potential valuation growth in the coming years.

The Bakken Formation: A Critical Resource for Lithium Supply

The Bakken Formation in North Dakota has become a pivotal player in the effort to establish a domestic lithium supply chain essential for the clean energy transition. Producing approximately 2 million barrels of lithium-rich oilfield brine daily, it ranks as the second-largest source of such brines in the United States, trailing only the Permian Basin. This makes the Bakken an ideal region for the application of Direct Lithium Extraction (DLE) technologies, as this technique offers a more efficient and environmentally friendly alternative to traditional mining.

Companies like Volt Lithium Corp. are leveraging Bakken's existing oil and gas infrastructure to implement DLE. This integration reduces costs and environmental impact while enabling scalable production. Wells, pipelines, and processing facilities already in place align seamlessly with Volt's brownfield development strategy. It accelerates timelines and avoids the high capital expenditures associated with greenfield projects.

Political Significance Under Doug Burgum's Leadership

The Bakken's strategic value is further amplified by the political rise of Doug Burgum, North Dakota's former governor, as Secretary of the Interior and head of the National Energy Council under President-elect Donald Trump.

In his role as "Energy Czar," Burgum brings unparalleled insight into the energy sector and is positioned to streamline federal policies supporting domestic lithium production. 

Known for his advocacy of energy innovation, Burgum is expected to champion initiatives that simplify permitting processes, expand access to federal lands for critical mineral extraction, and incentivize investment in projects like Volt's lithium operations in the Bakken. His leadership aligns with the Trump administration's goals of energy independence and economic growth, creating a favorable environment for companies advancing the U.S. critical minerals supply chain.

Advancing U.S. Energy Independence

As the demand for lithium grows, the Bakken Formation in North Dakota plays an increasingly important role in efforts to secure a domestic supply chain for clean energy technologies. This region's lithium-rich oilfield brines, combined with its established infrastructure, offer a practical pathway to expanding U.S. lithium production. The implementation of Direct Lithium Extraction (DLE) technology in the Bakken provides a more efficient and environmentally responsible method for harnessing these resources, leveraging existing oilfield infrastructure to minimize costs and reduce environmental impacts.

Technical Analyst Clive Maund concluded that Volt's fundamentals remain highly positive despite potential short-term market fluctuations, and he identified the company as a Strong Buy opportunity for investors.

Doug Burgum's leadership as Secretary of the Interior and head of the National Energy Council is expected to further enhance the strategic importance of the Bakken.

Known for advocating energy innovation, Burgum's policies are likely to focus on streamlining permitting processes, incentivizing investment, and promoting domestic critical mineral production.

By aligning state-level resources with federal initiatives, the Bakken has the potential to attract significant investments and accelerate the development of projects that contribute to U.S. energy independence. Volt Lithium also told Streetwise that Burgum might pay special attention to his home state when he settles into the role. 

This alignment of resources and policies positions the Bakken to support not only the increasing demand for lithium in the electric vehicle and energy storage markets but also broader energy security goals. As federal and state policies converge, the Bakken Formation could emerge as a key contributor to meeting national objectives for critical mineral supply chains and global competitiveness in the clean energy sector.

Catalysts for Volt Lithium's Growth

As noted in the company investor profile, Volt Lithium Corp.'s focus on scaling up operations and optimizing its DLE technology provides clear catalysts for future growth. The upcoming commissioning of the Generation 5 Field Unit in January 2025 marks a critical milestone in the company's expansion strategy. With the capacity to process 10,000 barrels of oilfield brine per day, this unit will significantly enhance Volt's production capabilities and operational efficiency.

A 3L Capital Company Update, published on December 18, noted, "Volt has a clear growth strategy advantage over peers, reinforced by targeting reservoirs with existing infrastructure and brine production, accelerating the commercialization process." 

Additionally, Volt's expansion into the North Dakota region represents another key growth driver. The company has secured funding from the State of North Dakota to acquire equipment for its field unit, which is expected to be deployed in the first half of 2025. Further funding applications, including an additional US$2 million for field studies, are planned for early 2025. This initiative not only diversifies Volt's geographical footprint but also strengthens its ability to capitalize on high-potential lithium reserves.

As highlighted in that same 3L Capital report, "The Permian Basin, where Volt operates, produces 19M bbls of lithium-infused brine daily, making it one of the largest sources of lithium in the USA."

Volt's strategy to produce lithium chloride, technical-grade and battery-grade lithium carbonate in the field positions it to meet the growing demand for lithium in the energy storage and electric vehicle markets, for. as well as for industrial uses such as heat-resistant glass and ceramics, lithium grease lubricants, flux additives for iron, steel and aluminium production. The company's ongoing optimization efforts, combined with its ability to achieve high lithium recovery rates, solidify its competitive advantage in a rapidly evolving industry. 

A Look At The Lithium Market

According to Ben's Lithium Playbook from Scotiabank, the lithium market is projected to remain oversupplied through 2028, leading to downward pressure on prices. This trend is influenced by slower-than-expected growth in electric vehicle (EV) production in the U.S. and Europe, which outweighs the rising demand for energy storage systems.

Despite the current oversupply, the long-term outlook for lithium remains robust, with prices expected to stabilize around $18,000 per metric ton of Lithium Carbonate Equivalent (LCE). This projection aligns with both the incentive price and marginal cost necessary for sustainable production. Major industry players are adjusting their strategies accordingly, focusing on cost efficiency and deferring certain projects to better align with market realities.

Emerging technologies, such as Direct Lithium Extraction (DLE), are playing a pivotal role in enhancing production efficiency. Volt's brownfield DLE strategy leverages existing oilfield infrastructure and production to extract lithium from brines, offering a more sustainable and cost-effective approach compared to traditional mining methods. This method is particularly advantageous in regions like North Dakota's Bakken Formation, making it a significant player in the U.S. lithium supply chain. 

A Strong Buy

*According to a report by Technical Analyst Clive Maund dated December 20, Volt's development of efficient DLE processes has transformed oilfield brine from a "worthless contaminant into a profitable by-product." Maund highlighted that the company's proprietary technology is now at the production stage, aligning perfectly with increasing governmental efforts to onshore lithium production in the United States.

Maund emphasized the company's operational milestones, noting that Volt is the first operator in North America to extract lithium from oilfield brine. He underscored Volt's ability to scale its operations effectively, particularly with its collaboration in the Delaware Basin in the Permian region. The company's cost-efficient processes and reduced operating expenses were highlighted as key differentiators that set Volt apart in the market.

From a broader perspective, Maund acknowledged the growing demand for lithium, fueled by the expansion of clean energy initiatives and the global transition to electric vehicles. Volt's capacity to meet this demand positions it as a critical player in the industry. Maund concluded that Volt's fundamentals remain highly positive despite potential short-term market fluctuations, and he identified the company as a Strong Buy opportunity for investors.

Ownership and Share Structure

Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 14% of the company.

According to Refinitiv, James Alexander Wylie owns 7.97% of the company, Martin Scase owns 4.53%, Warner Uhl owns 0.81%, Morgan Tiernan owns 0.35%, and Kyle Robert Hookey owns 0.10%.

Refinitiv reports that institutions own less than 1% of the company, as Eagle Claw Investments Pty. Ltd. owns 0.98%.

According to Reuters, the company has 164.72 million shares outstanding and a market cap of CA$43.65 million. It trades in a 52-week range of CA$0.16 and CA$0.49.