Direct lithium extraction (DLE) uses selective sorbents, ion exchange, or membrane technologies to pull lithium directly from geothermal brines in hours rather than the 12-18 months required by traditional evaporation pond methods. The DOE committed a $1.4 billion loan to EnergySource Minerals for a DLE plant near California's Salton Sea, where geothermal power plants already produce lithium-rich brine as a byproduct. Standard Lithium secured a $225 million DOE grant for its Arkansas DLE project, and Controlled Thermal Resources plans a 2026 IPO for its combined geothermal-lithium operation.
The Salton Sea region alone is estimated to contain enough lithium to supply 375 million EV batteries — potentially making California a global lithium supplier. DLE produces lithium with a dramatically smaller environmental footprint than either South American evaporation ponds (which consume vast quantities of water in arid regions) or Australian hard-rock mining. The technology also recovers other critical minerals like zinc and manganese from the same brine streams, creating multiple revenue sources.
DLE represents a strategic opportunity to co-produce clean energy and critical minerals from the same wells. Geothermal plants generate baseload power while their spent brine yields battery-grade lithium. This synergy could reduce US dependence on lithium imports (currently 50%+ from Chile and Australia) while supporting both the grid and the EV supply chain. The technology is still proving commercial viability at scale, with 2026-2027 as the critical period for first large-scale DLE production.