International Battery Metals Ltd.: A Strategic Update on Lithium Extraction

International Battery Metals Ltd. (IBAT) has recently provided a general corporate update, highlighting key developments and strategic initiatives in the lithium extraction sector. As a leading technology company focused on environmentally responsible lithium extraction methods, IBAT continues to make significant strides in its mission to support the growing demand for lithium in the global battery market.



One of the most notable announcements from IBAT is the successful deployment of its modular direct lithium extraction (DLE) plant at US Magnesium LLC. This marks a significant milestone for the company, as it is the world's first commercial modular DLE plant and the first commercial DLE plant in North America. The plant, which is co-located at US Mag's existing operations outside Salt Lake City, Utah, is designed to process lithium-containing waste-magnesium salts, generating a high-purity lithium chloride eluent. This eluent is then further processed by US Mag's on-site facilities to produce lithium carbonate, meeting US Mag's specifications.



The modular design of IBAT's DLE plant offers several competitive advantages, including scalability, smaller footprint, rapid deployment, and compatibility with diverse brine resources. This design allows for easy integration into existing production facilities, enabling customers to bring lithium production online in record-setting time. Additionally, the proprietary direct lithium extraction technology employed by IBAT lowers operating costs by selectively extracting lithium from the brine while efficiently removing contaminants.

However, IBAT recently announced that it has idled the DLE plant at US Mag due to economic challenges stemming from the current price environment of lithium carbonate. Despite seeing stability and moderate price recovery in the first half of 2025, since June, there has been significant weakness in pricing. This economic challenge, combined with the successful commissioning of the plant, has led to the decision to suspend operations until lithium prices recover.



Despite this temporary setback, IBAT remains optimistic about the future of the lithium market and expects better conditions in 2025. The company is currently evaluating options for the DLE plant, including the possibility of expanding its operations to other customers or resource holders. The modular, transportable design of the plant allows for rapid deployment to a resource holder's production site, which could provide additional revenue streams and mitigate the impact of idling the plant at US Mag.

In conclusion, International Battery Metals Ltd. continues to make significant progress in the lithium extraction sector, with the successful deployment of its modular DLE plant at US Mag being a standout achievement. Although the company has faced economic challenges due to the current lithium carbonate price environment, it remains optimistic about the future of the lithium market and is exploring expansion opportunities to capitalize on the growing demand for lithium in the global battery market. As a leader in environmentally responsible lithium extraction methods, IBAT is well-positioned to continue its growth and contribute to the development of a sustainable and efficient lithium supply chain.