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XThe Lithium Race Takes Shape in the Salton Sea
David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Located roughly a hundred miles east of San Diego, the Salton Sea is California’s largest landlocked body of water, for now.
Measuring 5 miles across and 35 miles long in its current form, the lake was created by diverting water from the Colorado River into the region for agricultural purposes. Once a vacation destination renowned for its wildlife and wetlands, a series of environmental mishaps and mismanagement have left the lake toxically salty, shrinking and often malodorous. Conditions have gotten so bad that Palm Springs Life Magazine called the region’s transformation “the biggest environmental disaster in California history” in March of 2020.
But against this unlikely backdrop, new life—or at least new industry—is scrambling to set up shop in the region. The Salton Sea, it turns out, is rich with lithium, an element that has taken center stage in the world’s transition to clean energy and its ever-growing demand for batteries. From smartphones to electric vehicles, there’s a pretty good chance that the last battery you used had lithium ions inside. Prices for the metal reached an all time high in September, and futures are up more than 400% since the start of 2021. With Biden’s new economic policy outlined in the Inflation Reduction Act, there are strong financial incentives to move battery production back to North America.
If that’s going to happen the Salton Sea could very well become the lithium capital of North America, or to paraphrase Governor Gavin Newsom, the region could become the “Saudi Arabia of lithium,” and the players are already starting to assemble.
Currently, there are three companies attempting to set up plants in the Salton Sea for direct lithium extraction: EnergySource Minerals, Controlled Thermal Resources and BHE Renewables, a branch of Berkshire Hathaway. All three companies have similar business strategies from a high level, all of which involve geothermal power plants. These plants, which are common in many parts of the world, draw hot, salty water from deep in the ground to create steam which drives a turbine to produce electricity. What makes the Salton Sea so special is that its geothermal brines just happen to contain lithium.
In a 2017 study, researchers from the U.S. DOE Office of Energy Efficiency and Renewable Energy analyzed more than 2,000 samples of geothermal fluid from U.S. sources and found that only 1% had significant lithium concentration. This rare confluence of geothermal activity and lithium presence provides an opportunity for companies to generate electricity and mine lithium simultaneously.
Beyond their marriage of geothermal energy and lithium extraction, the three companies begin to diverge.
According to former dot.LA engagement editor Luis Gomez — whose newsletter Lithium Valle, is essential reading on this topic — EnergySource seems to be out in front early.
“They claim to have the technology that’s patented, they claim to have done the research, they claim to have the funding, and they claim they're ready to go and start production,” says Gomez. “They are kind of considered the canary in the coal mine.”
According to a report from the United States Department of Energy, EnergySource plans to eventually scale production up to over 20,000 metric tons of lithium hydroxide per year using its proprietary Integrated Lithium Adsorption Desorption technology.
Construction on the plant was slated to start earlier this year, but has been delayed. EnergySource has said publicly that lithium production might begin in the second quarter of 2024, but it’s unclear whether this date will also be pushed back. The company has a long history of operating in the region, having run the John L. Featherstone geothermal plant since 2012. The new venture into lithium would leverage that same plant, but without more details about how their proprietary technology works, there’s not much to do but wait and see.
One potential problem facing all three lithium extraction companies is that the Salton Sea geothermal brines are not the same as the brines in evaporation ponds similar to those in Argentina, Chile and Bolivia, where more than half of the world’s lithium is produced. Specifically, the deep geothermal brines in the Salton Sea contain more silica and transition elements, which may complicate the chemistry of purifying the lithium. Still, many researchers are extremely bullish on the prospect of tapping into these reserves. Alex Grant, The Principal at Jade Cove, a research organization focusing on direct lithium extraction technologies, says that much of the skepticism surrounding the technology can be attributed to competing financial interests that are trying to squash the nascent tech’s potential in favor of an established method.
Lithium Mines in the Atacama Salt Flats, Chile from an altitude of 15km via Google Earth. The facility is about 10km wide.
Google Earth
For its part, BHE Renewables, operating as CalEnergy, runs a fleet of 10 geothermal plants in the Imperial Valley. The company had previously announced its intent to set up a direct lithium extraction demonstration plant sometime before the end of 2022 to assess the viability of lithium extraction. If that pilot program goes well, the company could build a commercial-scale facility as early as 2026 with a projected annual capacity of 90,000 metric tons of lithium.
Obviously, having the backing of Berkshire Hathaway comes with advantages and capital. Add into the equation another $15 million in DoE grant money obtained last winter, and BHE appears to be well positioned as a major player in the long term.
Finally, there’s Controlled Thermal Resources. As the only company not already operating a geothermal business in the region, CTR is something of an outsider and dark horse. By 2024, the company hopes to build both a geothermal energy plant and a direct lithium extraction plant to operate in parallel, projecting a capacity to extract 300,000 metric tons of lithium carbonate equivalent annually by 2030. As dot.LA previously reported, Controlled Thermal Resources has partnered with Statevolt, a company that intends to build a $4 billion gigafactory nearby that will run on power from CTR’s geothermal plant and make batteries from the lithium it extracts. It’s a beautiful closed-loop business model. But again, all of this relies on the direct lithium extraction technology, and details are scant.
According to Gomez, despite the typically cut-throat nature of the energy industry, the relationship between the three upstarts in the Salton Sea is often surprisingly cooperative at the moment.
“They want the others to succeed because it kind of gives them the confidence that their technology is also eventually going to succeed,” he says. “It gives confidence to investors.”
Which is all to say, there may well be space for all three companies if the technology is as solid as they claim. If that’s the case, the Salton Sea and its surrounding region may have yet another miraculous transformation up its sleeve.
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David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
'We’re Running Out of Ore on Earth': Astroforge Targets April for Test Asteroid Refining Mission
02:00 AM | February 13, 2023
Photo: Astroforge
One of the most-used elements in industrial work on Earth is disappearing.
Popular for industrial use because of its resistance to corrosion and heat, platinum sells for over $1,000 an ounce and is in everything from wedding bands to medical devices to a number of auto parts.
And retrieving what little of the element does remain, will only exacerbate the ongoing climate crisis – resource extraction was the source of half the world’s carbon emissions and 80% of its biodiversity loss in 2019 and that number has likely only risen.
The problem’s been known for awhile; back in 2016 the Massachusetts Institute of Technology predicted demand would outpace supply of platinum and palladium. At that time, the college estimated we’d run out of platinum by 2050, a mere 27 years from now.
There’s also the issue that what platinum remains is in the hands of powers adversarial to the U.S.
Russia accounts for up to 30% of the world’s palladium supply, and up to 10% of its platinum, and its war in Ukraine has pushed export prices higher. MIT also estimated that China, another stockpiler of industrial metals, could stop selling its platinum stores to the greater globe as soon as 2034.
So what is there to do?
The answer could lie thousands of miles from our planet, in deep space, according to Astroforge CEO and former Virgin Orbit veteran Matt Gialich. Gialich is certain that in the near future, it’ll be commonplace for companies to operate refineries in space that can sort and send back elements crucial for construction on earth.
“We know that these concentrations are super high in space,” Gialich said. He said Astroforge is starting with platinum metals, but it does have “a future roadmap that’s much, much bigger than that,” but wouldn’t share more about what other materials the company hopes to mine in space. It’s reminiscent of the old California Gold Rush – the minute you tell someone there’s platinum in them there asteroids, others with means will want to rush in first.
Astroforge is developing technology to mine and refine minerals in deep space. The company will face a vital test in its mission to mine asteroids for minerals this April, when it tests its in-space refinery technology for the first time.
In particular, Astroforge is looking at retrieving palladium and platinum from asteroids. The shrinking store of these metals makes it easier to understand why going to space to mine more might not be such a far-fetched plan.
Gialich pointed out the emissions problem and noted, “part of that is platinum group mining… not all, but a big part of it. When it comes to mining metals, there’s just no way to solve that; you can do things to reduce it, but we’re running out of ore on the earth as we continuously mine.”
He noted that a while ago, it wasn’t feasible to undertake these sorts of missions, but said that mission price continues to drop as more companies enter the private space race and offer rideshare missions for lower and lower costs.
“As we continue to run out of ore and as access to space becomes cheaper, we think we're actually past the inflection point of when this makes more economic sense to do,” Gialich said.
But, it’ll take a lot of cash and crafty partnerships – NASA spent $800 million to retrieve only 60 grams during a similar project. Two other space mining firms, Planetary Resources and Deep Space Industries, were bought out before reaching their goals. This is why Astroforge raised $13 million in May, but it’ll likely need much more than that for future missions and anticipates future fundraises. Gialich wouldn’t disclose if Astroforge has any customers signed up for future missions or to buy space ore yet.
This upcoming mission in April will see Astroforge’s small in-orbit refinery hitch a ride to space on SpaceX’s Falcon 9 rocket, in partnership with British small satellite launcher OrbAstro. The plan is to test the refinery capabilities in space first by supplying the refinery with an “asteroid-like material” (so, a rock, but not an asteroid) that the tech will then vaporize and sort into its elemental components while in orbit. It’s a vital test of if the refinery can function in space, and if all succeeds, a critical part towards Gialich’s overall mission – becoming the first company to successfully mine asteroids.
“We have gone to asteroids before,” Gialich said. “We've landed on them, we've taken samples from them, we’ve done every step of the way, scientifically, multiple times. We just haven’t added that refining piece in, but that is actually very simple. You can prove that out on Earth, there’s not a big difference [in space].”
And Gialich really, really wants to be first. After all, whoever is,will have their pick of lucrative contracts as other private and public players rush in to gather up their share of the valuable asteroid minerals. NASA is leading a mission to explore an asteroid that some have joked could be worth $10 quintillion.
“We’re going to be the first commercial company to explore that frontier,” he promised. “There’s enough space out there for a ton of companies to exist and be successful. We’re still going to do it first.”
That, of course, remains to be seen. The SpaceX launch doesn’t yet have a window open. But when it does, it’ll be a crucial test of Astroforge’s system. And, it could eventually lead to an overhaul of our centuries-old mining system that might very well one day help the planet. At least, that’s Gialich’s overall goal.
“We’re going to save the planet, and to save the planet we need to have big, audacious ideas that really solve a critical problem we have on Earth, and we have a resource problem on Earth,” Gialich said. “Now that we’re a globalized world, there’s nowhere else to grow. There’s not an option here, this has to be done.”
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Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
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LA’s Upgrade in Travel and NBA Viewing
08:41 AM | July 26, 2024
Image Source: Los Angeles World Airports
🔦 Spotlight
Exciting developments are underway for Los Angeles as the city prepares for major upgrades in both travel and entertainment. The Los Angeles Board of Airport Commissioners has approved an additional $400 million for the Automated People Mover (APM) at LAX, increasing its total budget to $3.34 billion. This boost ensures the elevated train’s completion by December 8, 2025, with service starting in January 2026. For Angelenos, this means a significant improvement in travel convenience. The APM will streamline connections between parking, rental car facilities, and the new Metro transit station, drastically cutting traffic congestion around the airport. Imagine a future without the dreaded 30-minute traffic delays at LAX! The APM will operate 24/7, reducing airport traffic by 42 million vehicle miles annually and carrying 30 million passengers each year, while also creating thousands of local jobs and supporting small businesses.
Meanwhile, the NBA is also making waves with its new broadcasting deals. The league has signed multi-year agreements with ESPN, NBC, and Amazon Prime Video, marking a notable shift in media partnerships. ESPN will maintain its long-standing role, NBC returns as a network broadcaster after years away, and Amazon Prime Video will provide NBA games through its streaming platform. Starting with the 2025-2026 season, these deals will enhance the league's reach and revenue, aligning with the NBA's goal to expand its audience and adapt to evolving viewing habits. Whether you're catching the action on TV or streaming online, these changes promise to elevate the fan experience and bring more basketball excitement to Los Angeles.
🤝 Venture Deals
LA Companies
- Pearl, a startup that makes AI-powered software that assists dentists in identifying cavities, gum disease, and other dental conditions, raised a $58M Series B funding led by Left Lane Capital with Smash Capital, and others also participating. - learn more
LA Venture Funds
- Fulcrum Venture Group participated in a prior $3.5M Pre-Seed Round for Code Metal, a developer tools startup. - learn more
- B Capital co-led a $12.5M Seed Round for Star Catcher, a startup that aims to develop a space-based grid that captures solar energy in space and distributes it to satellites and other space assets. - learn more
- Mantis VC and Amplify participated in a $140M Series C for Chainguard, an open source security startup. - learn more
- Prominent LA venture capitalist, Carter Reum and wife, Paris Hilton, participated in a $14M Seed/Series A for W, the men’s personal care brand from Jake Paul. - learn more
LA Exits
- Warner Bros. Games acquired Player First Games, developer of the recently launched MultiVersus free-to-play platform fighter videogame. - learn more
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