Source: Streetwise Reports 09/11/2024
Volt Lithium Corp. has successfully installed its first field unit in the Permian Basin, Texas. Read how this affects the company’s plans to expand their direct lithium extraction production.
In a milestone in the company’s lithium production efforts, Volt Lithium Corp. (OTC: VLTLF) has successfully installed its first field unit in the Permian Basin, Texas. The field unit can process over 200,000 liters (1,250 barrels) of oil field brine per day. This represents a major scale-up from Volt’s previous capacity of 96,000 liters (600 barrels) per day. This announcement positions Volt as one of North America’s leading contenders in commercial lithium production from oil field brine.
As Alex Wylie, president and CEO of Volt Lithium, stated in the press release, “Our team is thrilled to share that we have successfully deployed, installed, and commenced function-testing of the field unit on-site at our strategic partner’s Permian basin location in West Texas.”
The installation of this unit not only increases production capacity but also serves as a prime cog in Volt’s strategic goals of commencing Direct Lithium Extraction (DLE) operations by the end of September 2024.
Looking at Direct Lithium Extraction
Direct lithium extraction (DLE) is a method of extraction that has been positioned as a solution to lithium’s increasing global demand. This call for more lithium is largely driven by the electric vehicle (EV) boom and the ever-increasing need for energy storage.
As Energy News reported in July 2024, the Inflation Reduction Act (IRA) provided a significant financial boost to the lithium mining sector, with “the Department of Energy (DOE) Loan Programs Office” injecting “about US$11.7 billion to support new loans for energy projects, including mines for needed metals like lithium.” This financial backing has strengthened the sector, which could enable companies like Volt to scale up their operations.
Technical Analyst Clive Maund rated Volt an Immediate Buy based on its recent consolidation and technical indicators.
The IRA has not only provided funding but also “incentivized metal and mineral extraction in the United States and in countries with a U.S. free trade agreement” making lithium mining more profitable and attractive for investors. Additionally, a 2023 IRA impact report from S&P Global cited “aggressive mine capacity additions” for lithium across the U.S., Chile, and Australia, indicating strong global growth in the sector.
Volt Lithium’s specific focus on DLE positions it as a key player in addressing the surging demand for lithium, particularly in the EV market. According to Visual Capitalist in June, “over 40 million EVs will …
