Alpha Lithium produces lithium products from Tolillar salar in Argentina

Vancouver-based junior Alpha Lithium’s (TSXV: ALLI; US-OTC; ALLIF) wholly-owned Tolillar salar project in Argentina, about 170 km southeast of the city of Salta, has the potential to be a significant source of lithium products used in lithium-ion batteries for electric vehicles, says Brad Nichol, Alpha Lithium’s president and CEO.

The company recently produced lab-scale quantities of lithium hydroxide and lithium carbonate from brine taken from the Tolillar salar using an in-house direct lithium extraction (DLE) process to produce a lithium concentrate containing 9,474 milligrams of lithium per litre.

While this was limited to bench-scale production, “achieving a lithium concentration this high was a great result this early in the DLE development process, especially after only founding the company about 18 months ago,” Nichol said in an interview.

To produce battery-grade lithium carbonate or lithium hydroxide from brine “requires a concentrate of at least 6,000 milligrams of lithium per litre; otherwise, it’s just not economically feasible.”

Samples of the lithium hydroxide and lithium carbonate have been sent to SGS Canada Inc., an inspection, verification, testing, and certification company in Ontario, to determine their purity. The test will provide a better understanding of the chemistry of the lithium products generated from Tolillar’s brine. 

According to Nichol, this is a critical consideration for the next steps in producing battery-grade lithium products. “The combination of high lithium concentration and low impurity levels could significantly reduce capex requirements, decrease operating costs, and improve the quality of the end products,” he explained.

A 2,000-litre brine concentrate also has been sent to Lilac Solutions Inc.’s laboratory in California, where large-scale Stage 1 testing using Lilac’s patented lithium DLE technology will complement Alpha Lithium’s in-house testing.

Nichol said that the company is eager to compare its results with those from Lilac’s ion exchange technology. 

The testing is part of the ongoing optimisation of the DLE process, which requires a clear understanding of brine chemistry. “The DLE process is bespoke and is unique to every operation and every salar [salt flat],” he said. “The test results will allow us to determine the most suitable lithium production process for brine mined from Tolillar salar.” 

Alpha Lithium picked up the project in March 2020 through its acquisition of a privately held lithium exploration and development company headquartered in Vancouver. Under the transaction, Alpha Lithium issued 15 million common shares and 3 million share purchase warrants on a 1:1 basis. The warrants were exercisable at 30¢ for a one-year period. 

“It’s a huge land package situated in a key lithium brine producing region,” said Nichol, explaining that the 27,477-hectare project lies within the heart of South America’s “lithium triangle,” an area covering parts of Argentina, Bolivia, and Chile, which holds more than half of the world’s lithium deposits.

The project is 10 km northwest of Livent’s (NYSE: LTHM) Fenix salar, which has been in production for over 25 years and is the largest and longest producing salar in Argentina and the source of one of the world’s purest lithium brines.

The acquisition of Tolillar “is a huge opportunity for Alpha and supports our long-term vision of advancing the company into a major lithium producer in the region,” said Nichol.

The area benefits from an extensive network of roads, transportation systems, and power lines, including a natural gas pipeline, all of which Tolillar salar will benefit from, Nichol noted.

The company has already taken steps towards bringing electricity to the site to power its DLE processing plant. 

Alpha Lithium is also expanding its land holdings in the area. In May, it acquired 3,800 hectares within the Hombre Muerto Salar, which is adjacent to Tolillar and owned by Argentina Prime Holdings Inc. Last month, it acquired an additional 287 hectares, increasing its land position to 4,087 hectares.