Breakthrough Victoria has announced a $2 million investment in ElectraLith, a Victorian-based startup focused on advancing lithium extraction and refining technologies in the clean energy sector.
According to Breakthrough Victoria, the global lithium market is set for growth, with projections indicating an increase from $26 billion in 2025 to $37 billion by 2027.
This surge is fueled by the growing demand for electric vehicles and energy storage systems.
However, the industry faces a major supply gap, exacerbated by the inefficiency of traditional lithium mining methods, such as evaporation ponds and hard rock mining.
These methods not only present environmental challenges but also limit access to a substantial portion of the world’s lithium resources.
For instance, evaporation ponds require up to 2.2 million litres of water to produce just one ton of lithium, a process that can take over 18 months.
In contrast, hard rock mining is carbon-intensive and can lead to chemical waste and groundwater contamination.
As Lauren Morrey, Acting CEO of Breakthrough Victoria, pointed out, “ElectraLith’s represents the next generation of lithium extraction and refining technology, unlocking the potential of a greener future.”
“Our investment underscores our commitment to supporting innovations that drive the green energy transition and position Victoria as a leader in critical technologies.”
A report by Goldman Sachs in April 2023 highlighted DLE’s potential to revolutionize the industry.
However, DLE still involves the use of water and chemicals, followed by a carbon-intensive refining process that is often carried out in countries like China, adding to supply chain complexity.
ElectraLith’s breakthrough solution, DLE-R, addresses these limitations by providing a one-step lithium extraction and refining process using proprietary membrane technology originally developed at Monash University.
Unlike other DLE methods, DLE-R requires no water or harmful chemicals and is fully scalable, relying on modular, off-the-shelf equipment.
Moreover, the technology holds the potential to be powered entirely by renewable energy, offering a cost advantage to lithium miners.
The Series A round, led by Australian deep tech investment fund Main Sequence, features an investor syndicate that includes IP Group, Hostplus, Rio Tinto, Chevron Technology Ventures, Fathom Fund Vista Energy, Marathon Petroleum, In-Q-Tel, and Monash University.
The funding will support the rapid scaling of ElectraLith’s DLE-R technology, with plans to deploy three pilot plants within the next 24 months.
“The Series A funds will enable DLE-R’s rapid development into what we believe will be the cleanest, most versatile and most cost-efficient method to extract and refine lithium,” said ElectraLith CEO Charlie McGill.
