POSCO’s Lithium Separation Technology
There’s less information in the public domain on POSCO’s proposed high efficiency lithium brine extraction technology. POSCO is obviously a giant global company that by all accounts wants to be a major vertically integrated player in lithium compounds and metal alloys. Despite a paucity of public news, it’s known that the technology delivered strong results at its fully self-financed demonstration plant in Argentina. POSCO’s demo plant has an operating capacity of 200 metric tonnes, “Mt,” per year of LCE. Continuous operating rates were achieved through a test period that ended in January 2015. During that period, in excess of 20 Mt of lithium compound was produced and exported to POSCO’s pilot plant in Korea, where it was further processed into battery grade lithium carbonate & lithium hydroxide. [Awesome video here]
POSCO asserts that its high efficiency lithium extraction technology has numerous advantages compared to traditional lithium brine evaporation technology. Specifically, it produces lithium considerably more quickly, minimizes the environmental footprint associated with massive solar evaporation ponds, and has a recovery rate of roughly 80%. That’s about twice the recovery rate of brine evaporation technology. Like Tenova Bateman’s LiSX technology, POSCO’s methodology has additional, similar advantages over brine evaporation and hard rock mining. Closely evaluating two lithium extracting technologies begs the question, how are they different and why continue moving forward with both? I posed that question to Mr. Robert Mintak, CEO & Director of Pure Energy Minerals, his response, quote,
“Solar evaporation ponds are inefficient and have a huge environmental footprint. Combining that with large capital costs and climate risk, they have no place in the clean energy supply chain. For a good part of the past five years I have focused a significant amount of time and effort researching brine processing technologies and building strategic relationships with companies whose technologies show the best likelihood for commercial success. POSCO and Bateman Advanced Technology are head and shoulders above anyone else. Pure Energy is fortunate to be able to work with both BAT and POSCO. Both technologies address the primary requirements we seek in Clayton Valley; 1. Greatly improved recovery efficiency, double that of evaporation ponds, 2. Smaller foot print, no ponds, 3. Weather independent, BAT with solvent extraction and POSCO through a chemical reagent process, both achieve these goals through proprietary processes. Which technology may prove to work best in Nevada? That is the work we are undertaking now, with the goal of producing our PEA in Q2 2016.”
Conclusion
Pure Energy Minerals, (TSXV:PE) (FRANKFURT:AHG1:GR) (OTCQB:HMGLF) is in the right place at the right time with an advanced stage exploration and process development (in close collaboration with Tenova Bateman & POSCO) project. Of the seven other publicly listed companies pursing lithium dreams, only Western Lithium has a defined project in Nevada that’s more advanced. It’s difficult to overestimate the significance of Pure Energy’s tight relationships with both Tenova Bateman and POSCO. Pure Energy has been working with both companies for 2-3 years. This represents a huge advantage. Peer lithium juniors are hustling to stake more claims and in many cases, first applying for the permits and approvals to begin exploration. This suggests that most peers still require additional equity capital to fund activities that Pure Energy is well beyond.
To be clear, Tenova & POSCO don’t fall into bed with every company with the word “Lithium” in its name. The fact that Pure Energy is one of the few in Nevada with not one but two paradigm shifting technologies to choose from is hugely important. Yet, as reflected in the Company’s market cap, this vital fact appears to be ignored. Pure Energy is arguably three years ahead of any Nevada junior and more advanced than most lithium juniors around the world. Time is money, a 3-yr head start is meaningful. Pure Energy has de-risked Clayton Valley and continues to do so in a prudent and efficient fashion. I expect that Pure Energy could break away from the pack next year as the market catches on to this compelling story.
Disclosure: Several of the companies mentioned herein have small market caps, including Pure Energy Minerals and Dajin Resources, small market cap stocks are highly speculative, not suitable for all investors. I, Peter Epstein, own shares of PE.V. and DJI.V. Mr. Epstein, CFA, MBA is not a licensed financial advisor. Readers should take that fact into careful consideration before buying or selling any stocks mentioned.
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