Summit Nanotech Corporation, a leader in sustainable lithium extraction technology, announced that it has successfully raised US$25.5 million through an investment round led by Evok Innovations and BDC Capital’s Climate Tech Fund. The funds will be allocated to advance the company's innovative direct lithium extraction technology, known as denaLi, which incorporates systems designed to fully recycle water.
This funding comes at a crucial time as Summit prepares to transition from demonstration to full-scale commercial design. “This funding arrives at a critical juncture as we bolster our strategic partnerships and move from demonstration to full-scale commercial design,” said Amanda Hall, Summit's Founder and CEO. The denaLi technology not only aims to enhance economic viability but also ensures environmental sustainability in lithium mining.
Summit Nanotech's denaLi technology utilizes data analytics and AI-driven process control, which results in reduced water use, prolonged sorbent lifespan, and greater lithium recovery rates. These advancements not only decrease production costs but also improve the overall accessibility of lithium resources—key components in battery production for electric vehicles.
The recent funding will also enhance the company's ability to address environmental concerns associated with lithium extraction, which has been under scrutiny due to its high water usage and chemical footprints. “We are dedicated to developing a sustainable lithium supply chain through collaboration,” stated Nobuyoshi Sogabe, General Manager at Mitsui Kinzoku, a participant in the funding round. His remarks underscore the commitment of various investors to not only support economic growth but also prioritize environmental responsibility.
Over the last six months, Summit has made notable progress by commissioning a demonstration plant in Northern Chile and successfully qualifying its sorbent with a significant lithium mining partner. In addition, the company has launched a proprietary data analytics platform designed to enhance process control and operational efficiency.
“The rapid growth in electric vehicle adoption will soon surpass lithium supply expansion,” cautioned Cheri Corbett, a Partner at BDC Capital's Climate Tech Fund. “Summit's technology addresses this urgent need by optimizing lithium recovery from brine to deliver high-quality lithium more cost-effectively.” Summit's drive to enhance lithium production is framed within a larger context; the escalating demand for lithium is primarily fuelled by electric vehicles and renewable energy storage solutions.
In related industry news, E3 Lithium is also advancing its own initiatives in Alberta. Earlier this month, CEO Chris Doornbos spoke at the PDAC convention, indicating that E3 will soon produce lithium in Alberta, signaling further developments within the North American lithium market. Despite a significant 83% drop in lithium prices over the past three years—currently hovering around C$12,000 per ton as compared to nearly C$70,000 in 2022—Doornbos indicates that long-term fundamentals remain strong.
“I think the lithium market is still pretty immature,” Doornbos remarked, emphasizing that early-stage market volatility is expected. Nonetheless, his company is ready to commence operations at a demonstration facility by September 2025, aiming to produce battery-grade lithium carbonate starting at 12,000 tonnes annually, with plans to scale production up to 36,000 tonnes over a projected 50 years.
The financial backing for E3's project is substantial, with the first phase of the undertaking requiring around C$2.5 billion in capital. While this investment represents a significant risk for E3 as a smaller company, Doornbos acknowledged the potential for strategic partnerships to mitigate risks associated with such a large-scale enterprise.
As both Summit Nanotech and E3 Lithium progress their respective projects, it becomes apparent that North America is positioning itself as a competitive player in the global lithium extraction market. With sustainability being a priority, these companies are not only advancing their technology but also addressing environmental concerns effectively.
With an emphasis on innovation, strategic partnerships, and sustainability, Summit Nanotech is set to revolutionize lithium extraction, while E3 Lithium's projects highlight the potential for regional production amidst an evolving market landscape. Recent funding developments and advancements in technology signal a strong potential for both companies to play pivotal roles in the future of lithium supply, vital for electric vehicles and other green technologies.
