Australia is backing an innovative lithium refining technology project by providing over A$2.9 million ($2 million) to ElectraLith.

The federal funding boost, being made through the Australian Renewable Energy Agency (ARENA), will support ElectraLith’s development of its DLE-R (‘R-Box’) tech — which uses a patented electro-membrane system to extract and refine battery-grade lithium hydroxide in a single modular step.

ElectraLith said on August 7 the R-Box pilot is fully electrified, can operate on renewable power, and uses significantly less water and fewer chemicals while producing fewer emissions than conventional lithium refining.

The total cost of the project near Perth, Western Australia, is A$7.3 million and is expected to take around 14 months. Design will start this year, with construction, commissioning and operations progressing over 2027.

If successful, ElectraLith said it plans broader adoption of its technology in Australia and globally.

Climate change and energy minister Chris Bowen said: “Sovereign onshore lithium refining capability is critical to Australia’s future.

“The world is electrifying quickly, global demand for lithium is surging and Australia is perfectly placed to help build the batteries underpinning modern society.”

Minister for resources and Northern Australia Madeleine King said Australia had let others capture the value of its minerals wealth by processing them offshore for too long.

“Projects like this mean we can refine our lithium right here in Western Australia, in an environmentally friendly way that reduces our water use and climate pollution while at the same time building sovereign capability and bolstering our security.”

Last month, ARENA gave a funding boost of up to A$45 million to Sicona Battery Technologies to demonstrate manufacturing of its advanced silicon-carbon battery anode material in Australia. The funding will help support construction and operation of a commercial-scale demonstration facility in New South Wales.