A mining tech startup spun out of Monash University has raised $27.5 million in a Series A.
The round for ElectraLith was led by CSIRO-backed deep tech VC Main Sequence, with existing investors Rio Tinto, IP Group and Monash Uni also participating along with Chevron Technology Ventures, Hostplus, Fathom Fund Vista Energy, Marathon Petroleum, CIA-backed US VC In-Q-Tel and the Victorian government fund Breakthrough Victoria chipping in $2 million.
ElectraLith is transforming lithium extraction, a key component in lithium-ion batteries for renewable energy storage using Direct Lithium Extraction (DLE). The onerous traditional method uses hard rock mining evaporation and chemical treatment taking between months and years to get to commercial production.
Evaporation ponds require up to 2.2 million litres of water to produce a ton of lithium over more than 18 months, which the mining process is carbon intensive and can cause chemical contamination.
The startup has commercialised a lithium-ion selective electro-membrane technology developed at Monash for simultaneous extraction and refining, without using water or chemicals that can run on renewable power.
Conventional lithium extraction v the ElectraLith process. Source: ElectraLith
The global lithium market is projected to grow by nearly 50% in the next two years to $37 billion by 2027.
ElectraLith, which was selected as one of the startups to take part in the Cicada x Tech23 program in 2023, launched in mid-2022, spinning out of Monash after raising $2.25 million in a Seed round backed by Rio Tinto and university research commercialisation specialist IP Group Australia.
Its DLE-R (refining) process produces lithium hydroxide in a single-step, modular and scalable system that can be applied to any lithium source including brines, geothermal, oil field, recycled material and spodumene deposits.
The Series A will fund plans for three DLE-R pilot plants in the next 24 months, CEO Charlie McGill said to create “the cleanest, most versatile and most cost-efficient method to extract and refine lithium”.
Breakthrough Victoria Acting-CEO Lauren Morrey said: “ElectraLith offers the next generation of lithium extraction and refining technology, unlocking the potential of a greener future.”