Breakthrough Victoria to invest $2 million lithium extracting and refining startup ElectraLith

Breakthrough Victoria is investing $2 million in ElectraLith, a Victorian company that is rapidly developing the cleanest, most versatile, and most cost-effective process to extract and refine lithium, the fundamental element of a sustainable future.

The global lithium market is projected to grow from $26 billion in 2025 to $37 billion by 2027, driven by the increasing demand for electric vehicles and energy storage systems.

Despite this demand growth, the industry faces a significant supply gap due to the inefficiency of traditional mining methods (evaporation ponds and hard rock mining), which pose environmental challenges and limit access to a substantial portion of the world’s lithium resources.

For example, evaporation ponds require up to 2.2 million litres of water to produce just one ton of lithium over more than 18 months. Similarly, hard rock mining is carbon intensive and can create chemical waste and groundwater contamination.

Direct Lithium Extraction (DLE) is widely recognized as a promising solution to these challenges. As noted in the Goldman Sachs report (April 27, 2023), DLE offers a faster, more efficient, and environmentally sustainable method for lithium extraction.

Notwithstanding these attributes, DLE continues to require water and chemicals, and also requires a further carbon intensive refining process.  This refining process is often performed in countries such as China, adding furthest supply chain complexity.

ElectraLith’s DLE-R process addresses these issues by offering a breakthrough one-step solution for lithium extraction and refining from any brine source using proprietary membrane technology initially developed at Monash University.

Unlike other DLE methods, DLE-R requires no water or harmful chemicals and is fully scalable, using modular, off-the-shelf equipment. Additionally, the technology has the potential to be powered entirely by renewable energy, providing a significant cost advantage to lithium miners.

Breakthrough Victoria joins the Series A alongside a world-class investor syndicate comprising IP Group, Hostplus, Rio Tinto, Chevron Technology Ventures, Fathom Fund Vista Energy, Marathon Petroleum, In-Q-Tel and Monash University.  The round was led by Australian deep tech investment fund Main Sequence.

ElectraLith’s Series A will support DLE-R ‘s rapid scaling and the deployment of three pilot plants within the next 24 months.

Commenting on the investment, ElectraLith CEO Charlie McGill, stated, “The Series A funds will enable DLE-R’s rapid development into what we believe will be the the cleanest, most versatile and most cost-efficient method to extract and refine lithium.  The quality, breadth and scope of the Series A investor syndicate provides the strongest signal yet of DLE-R’s full potential. This includes four blue-chip strategic investors, three globally recognized venture capital firms, one of Australia’s largest superannuation funds, Breakthrough Victoria, and In-Q-Tel (IQT), the not-for-profit strategic investor for the US national security community and America’s allies.”

Breakthrough Victoria Acting-CEO, Lauren Morrey, added, “ElectraLith’s represents the next generation of lithium extraction and refining technology, unlocking the potential of a greener future. Our investment underscores our commitment to supporting innovations that drive the green energy transition and position Victoria as a leader in critical technologies.”