EL DORADO, Ark. - Standard Lithium Ltd., a company specializing in lithium development, has announced the successful commissioning of North America’s largest Direct Lithium Extraction (DLE) unit. The commercial-scale DLE column, which is part of the company's Demonstration Plant in El Dorado, Arkansas, is designed to extract lithium from brine at a rate of 90 gallons per minute.
The company, which trades on the TSX Venture Exchange, NYSE American, and Frankfurt Stock Exchange under the ticker SLI, claims this to be the largest and only commercial-scale DLE column in operation in North America.
The recent two-week performance in April 2024 showed an average lithium recovery efficiency of 97.3% from the incoming brine flow, with an average rejection rate of over 99% for key contaminants such as sodium, calcium, magnesium, potassium, and 95% of boron.
This technology is expected to streamline the production of lithium chloride, which can be further refined into battery-quality lithium carbonate or hydroxide. The Demonstration Plant has processed more than 17 million gallons of Smackover brine and produced substantial amounts of lithium chloride solution since May 2020.
According to Dr. Andy Robinson, Director, President & COO of Standard Lithium, the successful operation of this column represents a significant step towards de-risking the company’s path to becoming a major sustainable lithium producer in North America. The performance data from this DLE column will also support the design assumptions for the Phase 1A Project and the South West Arkansas Project.
The company's approach prioritizes sustainable and scalable lithium production through the utilization of high-grade brine resources, robust infrastructure, skilled labor, and streamlined permitting processes. Its projects in southern Arkansas and East Texas aim to leverage the region's established brine processing industry.
This news is based on a press release statement from Standard Lithium Ltd. and has not been independently verified. The company cautions that the forward-looking statements within the release are subject to significant risks and uncertainties.
InvestingPro Insights
As Standard Lithium Ltd. makes strides with its Direct Lithium Extraction technology, the financial landscape presents a mixed picture. According to InvestingPro data, the company's market capitalization stands at a modest $192.21 million, reflecting the size and growth stage of the firm.
Despite the technological advancements, the company's P/E ratio has been negative, with the latest data showing a figure of -4.78, indicating that investors are not expecting earnings growth in the near term. The concerns are further underscored by a negative EBITDA growth rate of -78.62% over the last twelve months as of Q2 2024, suggesting operational challenges.
Standard Lithium's stock price has experienced significant volatility, as evidenced by a 6-month price total return of -61.89%, and it is trading near its 52-week low, which is only 22.47% of the 52-week high.
This price movement aligns with InvestingPro Tips that highlight the stock's volatility and its significant fall over the last year. Investors considering this stock should be aware that analysts are not expecting profitability this year, and the valuation implies a poor free cash flow yield, as per InvestingPro Tips.
For a deeper dive into Standard Lithium's financial health and for additional InvestingPro Tips, which currently number 12 for SLI, visit InvestingPro. Prospective and current investors can also take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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