Albemarle starts $3.1B Chile DLE permit process

U.S. lithium producer Albemarle (NYSE: ALB) has started the environmental review for a $3.1 billion (C$4.3 billion) lithium project in Chile that will deploy Direct Lithium Extraction (DLE) technology to boost recovery and cut brine use.

The “Transition to Direct Lithium Extraction (TED)” project marks the largest lithium investment under review in the country and targets a modernization of operations in the Atacama salt flat. The area is one of the world’s richest sources of the battery metal essential for electric vehicle batteries.

The initiative will integrate DLE alongside existing solar evaporation methods, nearly doubling lithium recovery while reducing both brine extraction and net pumping. It will have a useful life extending through 2045.

Albemarle said the project will not expand authorized extraction volumes or require new areas or evaporation ponds, signalling a shift toward efficiency rather than scale. Albermarle’s DLE system can return roughly 90% of processed brine to the salt flat, according to the company.

“In the 45 years we have been operating in Chile, we have undertaken a continuous process of innovation to respond to the evolving needs of our industry,” Sebastián Carmona, vice president and regional leader for Latin America, told Diario Financiero. “Today we are taking another step in that process with a project based on more than a decade of research and designed to reduce net brine extraction and increase process efficiency,” he added.

Project details

Albemarle plans to build a plant with up to six processing circuits and a combined capacity of 300 litres per second, which would reduce net extraction from 442 litres per second to 342 litres per second in early operations.

The project includes a 29-km, 220-kV transmission line connected to Chile’s renewable-powered national grid, which could also support regional power stability and connectivity.

The facility will cover about 730,000 sq. metres, smaller than existing pond systems, and will include a civic centre with offices and services alongside an industrial zone.

Albemarle said it engaged more than 1,250 people through early community consultations ahead of filing. It expects the project to create 350 construction jobs and up to 450 permanent positions if approved.