KBR Secures Weardale Lithium's Demonstration Plant in the UK: A Boon for the Lithium Industry and Local Economy

KBR (NYSE: KBR), a global leader in science, technology, and engineering solutions, has been selected by Weardale Lithium Limited to develop one of Europe's most advanced lithium brine extraction demonstration facilities in Eastgate, County Durham, United Kingdom. This strategic partnership marks a significant step forward in the global lithium supply chain, with potential implications for the local and national economy.

The demonstration plant, designed to scale up to a commercial production target of 10,000 tons per annum, will produce battery-grade lithium carbonate from geothermal groundwater sourced from existing production wells. KBR will provide technology licensing and proprietary engineering design for the plant, combining its PureLi® technology with Geolith SAS' Li-Capt® Direct Lithium Extraction (DLE) technology. This integrated technology offering has successfully produced battery-grade lithium carbonate from Weardale Lithium's brine at pilot scale.

The project's potential scale-up to 10,000 tons per annum of battery-grade lithium carbonate represents approximately 5% of Europe's current annual lithium demand, making it a meaningful contributor to regional supply security. The successful pilot-scale production validates the technology's commercial viability, reducing execution risk for both KBR and future clients.

The integrated KBR-Geolith technology offers distinct competitive advantages, including the utilization of existing geothermal wells to reduce capital intensity and environmental impact, and the Li-Capt® DLE technology's low water and carbon footprint, which aligns with stringent EU environmental regulations. The ability to produce battery-grade material directly addresses the high-value segment of the market, crucial for the growing demand in electric vehicle (EV) batteries and renewable energy storage.

From a business perspective, this project could serve as a reference case for KBR's technology in the rapidly growing lithium sector. With projected contribution of over £1 billion to the North East England economy, the scale suggests significant technology licensing and engineering service revenues for KBR. The company's entry into critical minerals processing, backed by 70+ years of relevant technical expertise, opens up a new growth vertical amid accelerating global electrification trends.

The project is projected to generate around 125 new full-time, highly skilled jobs, contributing to the local employment rate and skillset. Additionally, the project is recognized in the UK Government's Critical Minerals Strategy, indicating its importance for the country's transition to a net-zero economy. The successful implementation of the demonstration plant could lead to the establishment of a domestic lithium supply chain, reducing the UK's reliance on foreign suppliers and conferring transportation cost advantages, supply assurances, and an environmental premium.



In conclusion, KBR's selection for Weardale Lithium's demonstration plant in the UK represents a significant milestone in the global lithium supply chain. The project's potential scale, competitive advantages, and local economic impact position it as a crucial contributor to Europe's lithium demand and the UK's net-zero economy transition. As the project progresses, it will be essential to monitor its development and assess its long-term implications for the lithium industry and the local economy.