Can New Tech Make Lithium Truly Green?

DLE gains traction as Summit Nanotech and Rio Tinto advance cleaner lithium output, urging producers to scale with care

10 Dec 2025

South America’s lithium industry is entering a period of technical change as companies test faster and less water-intensive ways to meet growing battery demand. The sector has long relied on evaporation ponds, a slow process that requires large volumes of water. New methods aim to shorten production cycles, though the extent of any shift in supply remains unclear.

Direct lithium extraction, or DLE, has become a central focus. Summit Nanotech, a Canada-based technology group, reported in recent trials in Chile and Argentina that its process cuts water use by about 30 per cent compared with traditional evaporation systems. The confirmed reduction has drawn interest from producers and governments, although results across different brine types have not been demonstrated at scale.

Attention has also turned to Rio Tinto’s Rincon project in Argentina, where the miner is integrating DLE into its development plans. The company sees the technology as part of its strategy to secure future supply as electric vehicle demand rises. Analysts say Rio Tinto’s approach could shape how competitors assess similar upgrades, but any wider market impact remains uncertain.

Governments seeking lower emission production and battery manufacturers looking to clean up supply chains view DLE as a potential tool. Yet the method’s suitability across South America’s varied geology is still being evaluated. Large scale deployment will require new infrastructure, environmental approvals, community support and long term investment. These conditions differ by region and may determine project timelines.

Pilot schemes and new partnerships suggest growing confidence in alternative extraction methods. South America, one of the world’s main sources of lithium, could enter a phase of technological change with implications for global markets. But despite rising interest, the move from promising trials to commercial output is not assured, leaving producers to balance demand pressures with operational and environmental constraints.