Direct Lithium Extraction: prospects for the EU
14 January 2026
Direct lithium extraction (DLE) is an enhanced form of water treatment that selectively extracts lithium. Water, typically containing lithium at concentrations above 100 mg/L, is extracted from either a surface source (salt lake or produced water handling facility) or from a subsurface source (geothermal aquifer or shallow salar well). After lithium extraction, the processed water can be re-injected back into the subsurface or discarded. The main advantages of DLE over traditional extraction methods (evaporation ponds and hard rock mining) are a theoretically faster project cycle time, better overall environmental performance and a lower carbon-intensity.
DLE technology categories
DLE technologies can be split into five categories:
Adsorption (TRL 9)
Ion exchange (TRL 8)
Solvent extraction (TRL 7)
Membrane (TRL 4 – ion selective membranes)
Electrochemical (TRL 4)
Adsorption and ion exchange are currently the most mature and widely deployed. The methods are based on similar types of adsorbent materials (e.g. LiAl, LiMn based), but the lithium extraction mechanism is different. Adsorption involves selective adsorbents that take up lithium from a multi-ion aqueous environment and desorb lithium when washed with water. In ion exchange, the adsorbed lithium is exchanged with H+ ions when washed with acid. Solvent extraction is relatively less mature and relies on the selective transfer of lithium ions from an aqueous brine phase into an organic phase containing a lithium extractant. Membrane and electrochemical DLE technologies offer an exciting prospect but are currently at pre-commercial stage. The three main DLE technology types are being pursued commercially and deployed in various EU projects.
Figure: Company and EU project examples based on DLE technology category
The entire DLE process comprises multiple steps and processes. The process can be roughly split into four stages:
Pre-treatment
DLE
LiCl concentration
Conversion to lithium carbonate (Li2CO3) / lithium hydroxide (LiOH)
Figure: Schematic of the entire DLE process
The pre-treatment requirement depends on the brine being processed, but often involves, as a minimum, the removal of impurities using membrane filtration to prepare the lithium brine for DLE. Following the DLE process, the LiCl eluate is concentrated and then converted to battery-grade lithium carbonate / lithium hydroxide either by chemical precipitation or electrolysis. This final stage can take place either on site or off site at a dedicated third-party facility. For project bankability the entire process needs to be convincingly demonstrated at pilot stage.
The DLE value chain
As a new technology approach, the value chain is evolving. Some companies provide the whole system including the proprietary DLE technology, whereas others just provide the DLE technology or a component of the overall process. Selected company examples and their role in DLE are provided in figure below.
Figure: DLE market segmentation and global company examples
DLE under the EU context
Europe, like the rest of the world, is expecting a significant increase in lithium demand over the coming years. The EU’s peak demand is forecasted to increase from ca. 390,000 tonnes of lithium carbonate equivalent (LCE) in 2025 to ca. 792,000 tonnes in 2030. This can be mainly attributed to the electrification of mobility and the development of grid-scale energy storage.
Figure: Forecasted increase in LCE demand [1]
To meet this demand, DLE can potentially offer a more attractive method of lithium extraction compared to the traditional methods of evaporation ponds and hard rock mining (figure below). In particular, DLE possesses relatively high lithium recovery rates in a shorter time period, is less environmentally damaging and can access lithium resources previously unsuitable for lithium extraction, for example, brines with low lithium and a high concentration of impurities.
Figure: Comparison of the advantages and disadvantages of DLE, evaporation ponds and hard rock mining for lithium extraction
EU lithium resource
Europe possesses promising lithium resources for DLE with several regions having suitably high lithium concentrations (> 100 mg/L) to ensure economic viability. Resource understanding is still progressing which may lead to more promising areas in the future. Currently, the Upper Rhine Graben is viewed as the most promising resource in the EU, as evidenced by high project activity and EU / government financial support. Italy’s Latium and Campania geothermal areas have high lithium concentrations (>250 mg/L) but exploration is hindered due to challenging reservoir conditions (e.g., high temperature (>340°C, highly reactive and high concentrations of CO2 and H2S gases) [2].
Figure: Map indicating the most advanced lithium resource areas in the EU
Eastern Europe resources are currently under explored, however show potential in the Upper Silesian Coal Basin and Polish Permian Basin. A project to note is BrineRIS, led by Wroclaw University of Science and Technology, which is currently in the researching and testing phase.
The EU regulatory environment is indirectly supportive of DLE
Currently there are no specific EU regulations for DLE. However, lithium extraction via DLE will need to comply with the Critical Raw Materials Act (CRMA), which entered into force on the 23rd of May 2024. The CRMA aims to strengthen the European Union's resilience and reduce its dependence on imports of essential raw materials from third countries. The act designates lithium as a strategic raw material (SRM) and sets benchmarks for annual EU consumption [3]:
10% from local extraction
40% processed within EU
25% from recycled resources
No more than 65% from a single non-EU country
From 2027 (postponed from 2025), the EU Battery Regulation will enforce that “batteries” must declare full lifecycle carbon footprints from extraction onward [4]. This favours DLE adoption when comparing its CO2 emissions when renewably powered (1-3 kg CO2e/kg LCE) against traditional lithium extraction (evaporation pond - ca. 4 kg CO2e/kg LCE & hard rock mining - ca. 20 kg CO2e/kg LCE) [5]. Additionally, due diligence for lithium supply chains will be mandated from 2027. This will allow verification of environmental and human rights impacts from extraction to end use. DLE benefits from its lower water use and smaller footprint compared to evaporation ponds, providing some proof of reduced harm for the EU market.
There are alternatives to DLE for EU lithium production
The major DLE projects in the EU are progressing but none are yet at commercial scale production. Extensive pilot testing is required to select and optimise the right DLE technology for a particular brine source. Following this, downstream optimisation and de-risking must be carried out in order to develop offtake agreements. The Upper Rhine Graben in Germany is viewed as the most promising lithium resource with projects underway to target lithium carbonate production capacity of up to 27,000 tonnes/year.
Table: Comparison of example EU projects
DLE activity in Eastern Europe is limited and the resource is under-explored, however, there is significant potential for lithium extraction from hard rock sources. In particular, the Cinovec Project run by European Metals is aiming to produce nearly 30,000 tonnes/year of battery grade lithium hydroxide over a 25 year period.
Hard rock mining is also developing in Western Europe, especially in Portugal. The Barroso Lithium Project, the largest spodumene project in Europe, is being developed by Savannah Resources and listed as a “Strategic Project” under the CRMA. As of April 2025, the project is progressing towards completion of the Definitive Feasibility Study [6].
The benefit of promoting lithium extraction projects in the EU is in establishing a localised and efficient lithium supply chain close to the European battery industry. In addition, geothermal brine sources can co-produce renewable energy and lithium to provide a dual revenue stream and protect from single market volatility - whilst providing low-carbon heat for domestic and business users. Geothermal brines in the EU are developing and supported and have temperatures of approximately 100-200°C [7]. The heat energy can be harnessed to power the DLE process, therefore lowering the energy cost and potential associated carbon emissions, aligning with upcoming EU regulation previously mentioned [8].
Produced water from the oil and gas industry is subject to high disposal costs, environmental concerns and missed revenue opportunities. DLE can be a way to generate revenue from this wastewater by extracting high-purity lithium [9]. There is limited opportunity for DLE from produced water in Europe, with the exception of the high water cut onshore fields in central and Eastern Europe which are not yet being fully targeted for lithium extraction. MOLGroup have conducted a long-term pilot at Békés in Hungary, but the project has not yet been commercialised.
Co-benefit to the EU: Lithium and renewable heat
The development of DLE in the EU represents an important step towards strengthening the region’s autonomy in battery material production and meeting its climate objectives. Europe currently relies heavily on imported lithium, exposing downstream industries to price volatility, supply-chain risks, and geopolitical uncertainty. DLE offers a pathway to unlock substantial domestic lithium resources with a smaller environmental footprint compared to traditional mining and evaporation ponds. For DLE to be realised in the EU the major projects need to successfully transition to continuous commercial scale production and demonstrate cost attractiveness and a realised green premium with global alternatives (e.g., South American brines and Australian spodumene). Integration with geothermal and existing oil and gas infrastructure could accelerate deployment and reduce capital costs.
References:
[1] https://www.sciencedirect.com/science/article/pii/S2949790625001004
[2] https://www.sciencedirect.com/science/article/pii/S0375650522000372
[3] https://lithiumharvest.com/knowledge/energy-transition/critical-raw-materials/
[4] https://www.circularise.com/blogs/eu-battery-passport-regulation-requirements
[7] https://docs.nrel.gov/docs/fy21osti/79178.pdf
[8] https://www.eetimes.com/unlocking-europes-lithium-potential-with-direct-lithium-extraction/
[9] https://lithiumharvest.com/services/produced-water-treatment/