Compass Minerals Selects DLE Technology Provider and Announces Achievement of Several Key Milestones
Compass Minerals has selected EnergySource Minerals (ESM) as its direct lithium extraction (DLE) technology provider for its previously identified, approximately 2.4 mMT lithium carbonate equivalent (LCE) resource on the Great Salt Lake.
This selection comes following three years of extensive testing across multiple DLE technologies. Additionally, Compass Minerals announced the achievement of several key milestones and provided strategic updates regarding the company’s lithium development project, including:
- Targeting phase-one production of approximately 11 kMT LCE annually
- Estimated phase-one development capital of $262M (-30% to +40%)
- Phase one expected to yield approximately $626 million to $985 million in after-tax NPV and an after-tax IRR between 28% and 36%
- Completed life cycle assessment (LCA) confirms positive phase-one sustainability profile
“Over the course of the past several months, we have continued to make great strides on several strategic fronts driving our lithium development project forward,” said Kevin S. Crutchfield, president and CEO. “After significant efforts assembling internal lithium expertise and successfully testing the conversion potential of our resource, we are very pleased to today announce the achievement of additional key milestones including the selection of our DLE technology provider, disclosure of our initial project economics and the completion of a third-party assessment of our project’s sustainability profile. We are confident that the continued forward momentum achieved through these milestones further demonstrates the value creation potential, differentiated positioning and formidable environmental profile of our planned lithium development, all of which we believe will prove to be competitive advantages for Compass Minerals.”
Compass Minerals will be leveraging existing operational infrastructure, permits, water rights and pond processes to extract lithium as a co-product of its long-standing sulfate of potash, salt and magnesium chloride production at the company’s Ogden facility, thereby reducing the incremental environmental footprint of the project.
The company believes it remains on track and expects to enter the market with a cost-competitive, battery-grade lithium product by 2025.
Read the press release for more information.