International Battery Metals Ltd announces the signing of a term sheet for our modular direct lithium extraction plant with a customer.
International Battery Metals Ltd. (the “Company”) (CSE: IBAT), announce the signing of a term sheet for deployment of our modular direct lithium extraction plant (the “MDLE Plant”) with a customer (the “Customer”) in the western United States. Our MDLE Plant utilizes our proprietary selective absorption media minimizing the use of chemicals, reducing by-product waste, and recovering over 98% of our process water.
The Customer is a significant producer of metals and minerals including the production of battery grade lithium carbonate. Pursuant to the terms sheet, IBAT will immediately begin mobilizing the MDLE Plant to the Customer’s site where it will be integrated into existing production facilities.
The initial targeted production, following commissioning, is approximately 4,000 metric tons per annum of lithium carbonate with the goal of increasing this production to over 8,000 metric tons per annum by optimizing the MDLE Plant. The integrated system will represent the first commercial direct lithium extraction operation to go online in North America.
The term sheet provides for mobilization fees and cost sharing arrangements for the commissioning and optimization of the MDLE Plant. Once the MDLE Plant completes the initial commissioning, the term sheet also provides that IBAT will be entitled to monthly equipment rentals and royalties based on the volumes produced and the realized sales value of the lithium carbonate.
Additionally, the Customer will have certain options to purchase the MDLE Plant while IBAT will retain all the technology rights, the royalties, and be the exclusive supplier of the absorption media to the Customer.
John Burba, Founder and Chief Technology Officer said:
Our MDLE Plant is the industry leading direct lithium extraction technology available today.
“We are very excited for this opportunity to reach full commercialization and look forward to future developments with our outstanding Customer.”
Garry Flowers, Co-Chief Executive Officer added:
We are very pleased with achieving this significant milestone for IBAT.
“The opportunity to integrate our MDLE Plant with a Customer who has existing production facilities is an outstanding outcome, accelerating the full commercialization of our technology and achieving meaningful product revenues”
Michel Libor, Co-Chief Executive Officer further commented:
Accomplishing first commercial revenue is a major milestone for any company.
“The business and operational benefits that we expect will flow to us from the transaction contemplated by this term sheet is a credit to the IBAT team and their perseverance. This is an exciting opportunity to launch our commercial operations and begin growing the Company.”
The MDLE Plant uses IBAT’s proprietary selective absorption lithium media to extract lithium from brine fluids. The MDLE Plant was originally constructed in Lake Charles, Louisiana where it was extensively tested and received independent third-party validation of its operational performance. The modular design of the MDLE Plant will allow it to be mobilized to the Customer’s facilities.
Once the MDLE Plant is operational, the MDLE Plant will be optimized to increase its production capacity. This optimization will consist of adding additional extraction modules, containing IBAT’s proprietary selective absorption lithium media, and increasing certain valves and pumps to accommodate additional flow of brines.
About International Battery Metals Ltd.
The Company’s direct lithium extraction technology is based on proprietary lithium extraction housed in patented extraction towers that are enclosed in a modular, shippable platform able to be loaded and brought into production within 10 days of arrival on a customer site.
Utilizing the patented technology, the Company’s focus has been on advanced extraction of lithium chloride from ground water salt brine deposits and returning the same water to the subsurface aquifer from which it is extracted. The Company’s unique patented technology ensures faster delivery of lithium chloride while ensuring minimal environmental impact.
INTERNATIONAL BATTERY METALS LTD. ANNOUNCES THE SIGNING OF A TERM SHEET FOR OUR MODULAR DIRECT LITHIUM EXTRACTION PLANT WITH A CUSTOMER, VANCOUVER, BC, AND HOUSTON, Jan. 11, 2024
