Aquatech's Strategic Acquisition: Unifying Lithium Extraction Technologies for a Sustainable Future

Aquatech's Strategic Acquisition: Enhancing Lithium Extraction Technology for the Future

In a significant move set to reshape the lithium extraction landscape, Aquatech has successfully acquired Koch Technology Solutions' (KTS) direct lithium extraction (DLE) business. This acquisition marks a pivotal integration of KTS's Li-Pro™ Lithium Selective Sorption (LSS) technology into Aquatech’s PEARL™ process technology platform.

This synergistic partnership enhances Aquatech’s already comprehensive process flowsheet intellectual property (IP), thereby enriching its lithium conversion and crystallization capabilities. With the incorporation of Li-Pro technology, Aquatech now stands out as the only provider of a fully commercialized, end-to-end lithium processing solution—spanning extraction, purification, and refining. This development has crucial implications for the electric vehicle (EV) industry and utility-scale electricity storage systems (ESS), which increasingly depend on high-purity battery materials.

The integration of upstream and downstream lithium processing via the PEARL platform offers a modular approach that promises improved scalability for resource owners. This modularization is anticipated to enhance project bankability by minimizing process risks, expediting project timelines, and lowering overall lithium production costs. As part of the acquisition, the Li-Pro technology will be available under a licensing agreement that complements the PEARL full flowsheet offerings.

As the transition unfolds, all active lithium extraction projects utilizing the Li-Pro technology—including those associated with ongoing contracts and performance guarantees—will transition to Aquatech. Among these projects is the much-anticipated Joint Development Agreement (JDA) with Standard Lithium Ltd. (TSXV:SLI) (NYSE:ASLI) concerning the Smackover Formation. KTS has reportedly achieved remarkable results with its Li-Pro technology, having completed over 12,000 operational cycles at their demonstration facility and achieving an impressive lithium recovery rate exceeding 95%.

Additionally, the acquisition encompasses a licensing agreement related to a joint venture with Equinor (NYSE:EQR) for one of the largest lithium projects in the United States—targeting an initial 22,500 tons per annum (tpa) of lithium carbonate equivalent. This project is planned to contribute significantly to lithium supply, with initial production targeted for 2028 and structured for future scalability.

Dave Dotson, President at Koch Engineered Solutions, remarked on the acquisition's timing, stating, "Koch Technology Solutions has proven the Li-Pro LSS technology as a successful DLE solution, and the time has come to scale it for the market. Aquatech is uniquely positioned to implement this technology as a cost-effective, comprehensive process solution, which will generate considerable value for the lithium industry."

Garrett Krall, the Critical Minerals and Lithium Business Leader at Koch Technology Solutions, expressed confidence in the transition for existing lithium customers, noting that the broader offerings from Aquatech would benefit these stakeholders. Meanwhile, Venkee Sharma, Executive Chairman at Aquatech, expressed enthusiasm about the future, stating, "Bringing Li-Pro into the PEARL technology platform addresses urgent industry needs by providing the only tested full flowsheet solution experienced in both upstream and downstream lithium processing technology."

As the lithium market becomes increasingly fragmented with various technological offerings, the unification through Aquatech’s acquisition seeks to mitigate project costs, minimize risks, and enhance time-to-market efficiencies—addressing a pressing demand for critical minerals production in regions such as the Americas and Europe.

"With more than 45 years of expertise in scaling proven technologies, we are eager to advance Li-Pro LSS both as a standalone offering and as a vital component of the PEARL platform," added Sharma, underscoring the potential for growth in this innovative integration.

For further insights into Aquatech's strategic initiatives and technologies, you can visit Aquatech's official website or learn more about Koch Technology Solutions at Koch's website. This acquisition not only consolidates Aquatech’s position in the market but also sets a new standard for the lithium extraction processes of the future.