The energy industry is witnessing a major breakthrough with the formation of a joint venture between Occidental and BHE Renewables, a subsidiary of Berkshire Hathaway Energy. Together, the two companies aim to market the DLE developed by TerraLithium, a subsidiary of Occidental. This innovative technology extracts high-purity lithium compounds from geothermal brines. TerraLithium, which has patented the DLE technology, promises to transform any lithium-bearing brine into a source of high-purity lithium, meeting the industry’s growing needs. The joint venture has begun a project at BHE Renewables’ geothermal power plant in California’s Imperial Valley to demonstrate the environmental and commercial viability of this technology.
Objectives and Environmental Commitment
Alicia Knapp, President and CEO of BHE Renewables, emphasized the importance of this initiative:
“This partnership with TerraLithium represents a significant step forward in our commitment to environmentally friendly and economically viable lithium production, while bringing benefits to the Imperial Valley community.”
The aim is to make this region a world leader in lithium production. Occidental, with its expertise in brine management and treatment, and BHE Renewables, with its in-depth knowledge of geothermal operations, form a unique duo to promote more sustainable lithium production. Richard Jackson, President of US Onshore Resources and Carbon Management at Occidental, said:
“We look forward to demonstrating how DLE technology can produce a mineral crucial to achieving net zero emissions goals.”
Implications for the Lithium Market
Lithium, a key element in batteries for electric vehicles, consumer electronics and energy storage, is also used in industrial applications such as the manufacture of glass, ceramics and pharmaceuticals. According to the International Renewable Energy Agency, demand for lithium for batteries is set to increase exponentially between now and 2030, in line with the growth in demand for batteries. Jeff Alvarez, President and CEO of TerraLithium, added:
“Creating a safe, reliable and domestic supply of high-purity lithium products is essential for the energy transition. The partnership with BHE Renewables will accelerate the development of our direct lithium extraction technologies and bring them to commercial production.”
Future prospects
Following a successful demonstration, BHE Renewables plans to build, own and operate commercial lithium production facilities in the Imperial Valley. The joint venture also plans to license the technology and develop lithium production facilities outside the Imperial Valley, extending its impact to a global scale. Occidental Petroleum, an international company with assets mainly in the United States, the Middle East and North Africa, is one of the largest oil and gas producers in the United States. Its subsidiary OxyChem manufactures base chemicals for life-enhancing products, while Oxy Low Carbon Ventures focuses on emission-reducing technologies and business solutions. TerraLithium offers a technological platform to extract lithium more responsibly, and BHE Renewables owns and operates solar, wind, geothermal and hydroelectric projects.
The collaboration between Occidental Petroleum and BHE Renewables could not only meet the growing demand for lithium, but also set new standards for more sustainable and environmentally-friendly production. This initiative could transform the Imperial Valley into a global hub for lithium production, making a significant contribution to the global energy transition.
