Australian lithium refining pilot gets government funding for “cleanest and most cost efficient” technology

The Australian Renewable Energy Agency (ARENA) will invest $2.9 million into a pilot demonstrating an innovative lithium refining technology, which uses electricity to turn lithium contained in liquid waste from mining and processing into high-quality lithium needed to make batteries.  

The funding will go to Electralith, a spin-out from Monash University that is based around the company’s patented Direct Lithium Extraction and Refining (DLE-R) processes.

It bills its technology as “the cleanest, most versatile, and most cost-efficient method to extract and refine lithium”, said says it requires no water or chemicals, and that it can be powered entirely with renewable energy.

The federal government’s investment will help to pilot Electralith’s innovative ‘R-Box’ lithium refining technology which uses electricity to turn convert lithium from processing waste streams into battery grade lithium needed to make batteries.

Located in Kwinana, Western Australia, the R-Box pilot will cost $7.3 million in total and take around 14 months, with design expected to get underway some time this year, and construction, commissioning, and operations to progress over 2027.

If successful, Electralith hopes to secure broader adoption of its technology in Australia and globally.

Importantly, if Electralith’s pilot is successful, it has the opportunity to revolutionise Australia’s lithium industry. While Australia is one of the world’s largest producers of lithium, processing is largely done overseas.

Expanding Australia’s own domestic refining capability is seen as a critical step in building a more resilient and competitive critical minerals industry, according to Monash University.

Building out a domestic refining capability is also in line with the Albanese government’s Future Made in Australia agenda, which aims to push Australia further up the global value chain while creating new economic opportunities.

“The world is electrifying quickly, global demand for lithium is surging and Australia is perfectly placed to help build the batteries underpinning modern society,” said Chris Bowen, federal minister for climate change and energy.

“Sovereign onshore lithium refining capability is critical to Australia’s future, and we are proud to support Australian technology that can refine lithium more cleanly, using less water and producing fewer emissions.”

Electralith was spun out of the Department of Chemical and Biological Engineering at Monash University, based on research from Professor Huanting Wang, a Sir John Monash Distinguished Professor and ARC Australian Laureate Fellow, along with his research team.

The company’s DLE-R process has produced battery grade lithium hydroxide from a range of sources, including from a highly contaminated and low concentration brine from the Paradox Basin in the United States.

In early 2025, Electralith secured $27.5 million in funding to supercharge the technology’s development.