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TerraLithium and BHE Renewables Achieve Key Milestones Toward Commercializing Direct Lithium Extraction
TerraLithium and BHE Renewables Achieve Key Milestones Toward Commercializing Direct Lithium Extraction
June 23, 2026
By: Robert Buluma
Introduction: A Turning Point for Domestic Lithium Production
On June 22, 2026, TerraLithium—a wholly owned subsidiary of Occidental—and BHE Renewables announced significant advancements in their direct lithium extraction (DLE) technology portfolio, marking a pivotal moment for the domestic lithium supply chain in the United States. The companies have successfully produced lithium chloride using their DLE process at BHE Renewables' geothermal facility in Calipatria, California, followed by the manufacture of battery-grade lithium carbonate. Additionally, they achieved the direct conversion of lithium chloride into lithium hydroxide using a commercial-scale electrolyzer at TerraLithium's R&D facility in Brawley, California.
These milestones represent more than just technical achievements—they signal the emergence of a responsible, domestic source of high-purity lithium that could help reshape the global energy landscape. As the world accelerates toward electrification and renewable energy storage, the ability to produce battery-grade lithium compounds from geothermal brines in California's Imperial Valley offers a compelling alternative to traditional, environmentally intensive extraction methods.
The Strategic Importance of Lithium in the Energy Transition
Lithium is the cornerstone of the modern energy storage revolution. It is a critical component in batteries for electric vehicles, consumer electronics, and energy grid storage. It is also used in industrial applications to manufacture glass, ceramics, and pharmaceuticals. According to the International Renewable Energy Agency, battery lithium demand is projected to increase tenfold over 2020–2030, in line with battery demand growth.
By 2026, the global lithium market is estimated at 1.01 million metric tons of lithium carbonate equivalent (LCE), growing from 2025's value of 0.85 million metric tons, with 2031 projections showing 2.44 million metric tons at a compound annual growth rate of 19.24%. The global lithium demand in 2026 is expected to grow approximately 14% year-over-year, fueled primarily by electric vehicle adoption and expanding energy storage requirements.
However, this surging demand has exposed a critical vulnerability: the United States remains heavily dependent on foreign sources for its lithium supply. China now controls nearly 80% of the global battery supply chain, with over 90% of electric vehicles and storage batteries produced by Chinese and South Korean companies. While the U.S. imports the majority of its lithium carbonate primarily from Chile and Argentina, China dominates the supply of finished lithium-ion batteries. This dependency has become a national security concern, prompting the U.S. government to invest heavily in domestic lithium production through the Inflation Reduction Act and the Defense Production Act.
Against this backdrop, the TerraLithium-BHE Renewables joint venture represents a strategic effort to establish a secure, reliable, and domestic supply of high-purity lithium products.
Understanding Direct Lithium Extraction (DLE)
To appreciate the significance of these milestones, it is essential to understand what direct lithium extraction is and why it represents a paradigm shift in lithium production.
The Problem with Traditional Lithium Extraction
Conventional lithium production methods fall into two main categories: hard-rock mining and brine evaporation ponds. Both have significant drawbacks.
Hard-rock mining, primarily used in Australia and other regions, involves extracting lithium-bearing ore from open-pit mines, followed by energy-intensive crushing, heating, and chemical processing. This method is associated with high energy consumption, greenhouse gas emissions, and land degradation.
Brine evaporation, used extensively in South America's "lithium triangle" (Chile, Argentina, and Bolivia), involves pumping lithium-rich brine from underground aquifers into large evaporation ponds. The water is left to evaporate over 12 to 18 months—sometimes longer—to concentrate the lithium salts for separation. This process is slow, water-intensive, and requires vast tracts of land. In arid regions where brine extraction often competes with local water demands, the environmental and social impacts can be severe. Moreover, traditional pond-based processes experience more than 50% lithium losses.
How Direct Lithium Extraction Works
Direct lithium extraction offers a fundamentally different approach. Instead of relying on solar evaporation, DLE uses selective chemistry to extract lithium directly from brine sources. TerraLithium's patented technology employs a specialized sorbent—a material with high selectivity for lithium ions.
The process works as follows: lithium-rich brine flows through the sorbent material, to which trace lithium ions bind while other elements pass through. Once the sorbent is loaded with lithium, it is separated, and a high-concentration lithium chloride solution is produced. TerraLithium's sorbent has demonstrated 99%+ capture efficiency. This lithium chloride can then be processed into battery-grade lithium carbonate or, using a commercial-scale electrolyzer, directly converted into lithium hydroxide.
The advantages of DLE are substantial: it eliminates the need for 12-18 month evaporation cycles, drastically reduces water consumption, minimizes land occupation, and enables closed-loop brine management. DLE can begin producing lithium after mere hours or days of deployment, compared to months or years for evaporation ponds. The result is a faster, more efficient, and more environmentally responsible approach to lithium production.
The TerraLithium-BHE Renewables Joint Venture
A Partnership of Industry Giants
The collaboration between TerraLithium and BHE Renewables brings together two powerhouses with complementary expertise.
TerraLithium, a wholly owned subsidiary of Occidental, provides a technology platform for extracting lithium from geothermal and other brines to produce ultra-pure battery-grade lithium hydroxide and lithium carbonate. The company holds an extensive, affirmed portfolio of 40+ U.S. patents covering core DLE technologies. In April 2021, the Patent Trial and Appeal Board of the United States Patent and Trademark Office affirmed the validity of TerraLithium's twenty-eight patent claims, following five previous Board decisions in 2020 that affirmed patents associated with the company's lithium extraction technology.
BHE Renewables, a wholly owned subsidiary of Berkshire Hathaway Energy, operates 10 geothermal power plants in California's Imperial Valley, which process 50,000 gallons of lithium-rich brine per minute to produce 345 megawatts of clean energy. This existing geothermal infrastructure provides an ideal platform for lithium extraction: the brine is already being pumped to the surface for power generation, offering a ready-made, continuous source of lithium-bearing fluid.
The joint venture was formally announced in June 2024. At the time, Richard Jackson, President of U.S. Onshore Resources and Carbon Management at Occidental, noted: "By leveraging Occidental's expertise in managing and processing brine in our oil and gas and chemicals businesses, combined with BHE Renewables' deep knowledge in geothermal operations, we are uniquely positioned to advance a more sustainable form of lithium production".
Alicia Knapp, President and CEO of BHE Renewables, added: "This joint venture with TerraLithium represents a significant advancement in BHE Renewables' commitment to pursuing commercial lithium production that is environmentally safe, commercially viable and leads to good outcomes for the Imperial Valley community".
The Imperial Valley: A Lithium-Rich Resource
California's Imperial Valley, particularly the Salton Sea Known Geothermal Resource Area, has been identified as a potential domestic U.S. source of lithium due to the brine-hosted lithium in the deep subsurface geothermal reservoir. Geothermal brine production at the Salton Sea Geothermal Field has averaged just over 120 million metric tons per year since 2004, with lithium concentrations of approximately 200 parts per million.
The resource is enormous. Analysis funded by the U.S. Department of Energy concluded that total lithium resources in the region could produce more than 3,400 kilotons of lithium, enough to support over 375 million batteries for electric vehicles. The lithium brine reservoir inventory is estimated at between 4 and 18 million metric tons of lithium carbonate equivalent. This is one of the largest known lithium brine deposits in the world.
The region has been rebranded as "Lithium Valley", reflecting the transformative economic potential of lithium extraction for an area burdened by environmental degradation, poverty, and labor exploitation. Imperial County is one of California's most socioeconomically challenged regions, with notably high poverty and unemployment rates. Lithium extraction represents a possible economic renaissance, with the potential to create 1,000 construction jobs and 700 permanent operations jobs, according to a report from the nonprofit RAND Corp.
The Milestones: From Laboratory to Commercial Production
Technical Achievements
The June 22, 2026 announcement detailed two significant technical achievements:
1. Production of Lithium Chloride and Battery-Grade Lithium Carbonate
Using their DLE process at BHE Renewables' geothermal facility in Calipatria, California, the joint venture successfully produced lithium chloride. This lithium chloride was then processed into battery-grade lithium carbonate—a compound that meets the stringent purity requirements for commercial battery manufacturing.
2. Direct Conversion to Lithium Hydroxide
At TerraLithium's R&D facility in Brawley, California—located in the second-largest geothermal field in the U.S.—the companies achieved the direct conversion of lithium chloride into lithium hydroxide using a commercial-scale electrolyzer. This is a significant advancement because lithium hydroxide is increasingly preferred for high-energy-density battery cathodes, particularly those using nickel-manganese-cobalt (NMC) and nickel-cobalt-aluminum (NCA) chemistries.
Why Both Compounds Matter
Both lithium carbonate and lithium hydroxide play crucial roles in battery manufacturing. Lithium carbonate has traditionally been the more common and cost-effective choice for the synthesis of lithium iron phosphate (LFP) and lower-nickel-content NMC cathodes. It is widely used in LFP batteries for small EVs, home electronics, and IT devices.
Lithium hydroxide, on the other hand, enables the synthesis of cathode materials at lower temperatures and faster rates. It is essential for high-nickel cathode batteries such as NCM and NCA, which deliver superior energy density compared to LFP. These high-energy-density batteries are ideal for electric vehicles, aerospace, and aviation applications where reducing weight and volume is crucial.
By demonstrating the ability to produce both compounds, TerraLithium and BHE Renewables have validated that their technology portfolio can produce the full spectrum of battery-grade lithium compounds required by the industry.
Validation of Commercial Viability
Jeff Alvarez, President and General Manager of TerraLithium, emphasized the significance of these achievements: "Developing a secure supply of high-purity lithium will help meet the growing demand for electrification and reliable storage, creating optionality and confidence in our energy future. These milestones demonstrate the capabilities of TerraLithium's technology portfolio as we build a path from R&D to commercial scale".
Christina Fleming, Senior Vice President of Mineral Development for BHE Renewables, added: "These testing milestones represent a significant advancement in BHE Renewables' commitment to pursuing commercial lithium production. The results will be used to inform future engineering, scale-up assessments and project planning".
The joint venture aims to demonstrate that commercial application is both technically feasible and economically viable at scale. Following successful demonstration, BHE Renewables plans to build, own, and operate commercial lithium production facilities in Imperial County. The joint venture also plans to license the technology and develop commercial lithium production facilities outside the Imperial Valley.
Environmental and Sustainability Implications
One of the most compelling aspects of the TerraLithium-BHE Renewables collaboration is its potential to establish a more responsible model for lithium production.
A More Sustainable Approach
Traditional lithium extraction methods have significant environmental impacts. Conventional solar evaporation consumes vast amounts of water in already arid regions, depletes local water resources, and poses risks to local ecosystems. Open-pit mining involves land degradation, high energy consumption, and substantial greenhouse gas emissions.
Direct lithium extraction offers a dramatically different environmental profile. By eliminating evaporation ponds, DLE significantly lowers water use—an important factor in arid regions where brine extraction often competes with local water demands. DLE minimizes land occupation, enables closed-loop brine management, and reduces the carbon intensity of production. Compared to solar evaporation ponds and conventional hard-rock mining, DLE has much lower environmental impact: less land disturbance, minimal water consumption and emissions, and no tailings.
TerraLithium's technology is specifically designed to be "easier on the land and natural resources". The company's sorbent-based process requires no acids or reagents in the extraction step, except saline solution for the washing step. This represents a significant reduction in the chemical footprint of lithium production.
Challenges and Considerations
It is important to note that the environmental advantages of DLE can only be realized through careful system design, appropriate pretreatment, and controlled brine handling. Lithium extraction, even with DLE, affects land, water, energy use, reagent consumption, waste generation, and local ecosystems. In Imperial Valley, environmental and community organizations have expressed concerns about lithium extraction's water use, waste, and air pollution as production scales up.
The joint venture's commitment to environmentally safe production is therefore critical. As Alicia Knapp stated, the partnership represents a commitment to "commercial lithium production that is environmentally safe, commercially viable and leads to good outcomes for the Imperial Valley community".
Economic and Geopolitical Implications
Strengthening Domestic Supply Chains
The TerraLithium-BHE Renewables milestones come at a time of heightened focus on domestic supply chain security. The Inflation Reduction Act provides substantial tax incentives for domestic production of batteries and critical minerals, including production tax credits that apply to domestically produced cells, electrode active materials, and critical minerals. These incentives can reduce battery manufacturing costs by thirty percent or more.
The Bipartisan Infrastructure Law provides $7.9 billion to support the development of the domestic supply chain for battery manufacturing and recycling. The U.S. Department of Energy has also announced a $100 million funding surge for domestic lithium extraction innovation.
The Salton Sea lithium resource is particularly significant in this context. A May 2026 USGS assessment confirmed 2.3 million metric tons of economically recoverable lithium in the Appalachian region, but the Salton Sea resource remains one of the most immediately accessible domestic sources due to the existing geothermal infrastructure.
Economic Transformation for Imperial Valley
For Imperial Valley, lithium production represents a potential economic renaissance. The region, one of California's most socioeconomically challenged, could see significant economic growth from lithium extraction. Lithium could become Imperial Valley's largest job engine in decades, creating construction and permanent operations jobs.
The community has embraced the "Lithium Valley" identity, and residents are working to ensure the new industry will boost the local economy with investment and good jobs. However, there are also concerns about ensuring that the benefits of lithium extraction are equitably distributed and that environmental protections are robust.
Global Implications
The successful commercialization of DLE technology in California could have global implications. The joint venture plans to license the technology and develop commercial lithium production facilities outside the Imperial Valley. TerraLithium intends to build, own, and operate lithium production facilities as well as partner with other developers to commercialize its technology at global scale.
If successful, this could help diversify global lithium supply, reducing dependence on a small number of producers and enhancing energy security worldwide. It could also demonstrate that responsible, low-impact lithium production is commercially viable, encouraging broader adoption of sustainable extraction methods.
Technical Deep Dive: TerraLithium's DLE Technology
The Sorbent Technology
At the heart of TerraLithium's DLE process is a proprietary sorbent material with high selectivity for lithium. The sorbent binds lithium ions from the brine while allowing other elements—including sodium, potassium, calcium, and magnesium—to pass through. Once the sorbent is loaded with lithium, it is separated from the brine, and a high-concentration lithium chloride solution is produced.
The sorbent has demonstrated 99%+ capture efficiency, meaning that nearly all of the lithium in the brine can be recovered. This compares favorably to traditional evaporation ponds, which can lose more than 50% of lithium.
From Lithium Chloride to Battery-Grade Products
The lithium chloride produced by the DLE process can be processed in two ways:
Lithium Carbonate: Lithium chloride is converted to lithium carbonate through a series of chemical reactions, resulting in a battery-grade product with purity of 99.5% or higher. Lithium carbonate is the traditional workhorse of the lithium battery industry.
Lithium Hydroxide: Using a commercial-scale electrolyzer, lithium chloride can be directly converted to lithium hydroxide. This direct conversion pathway is significant because it eliminates intermediate steps, potentially reducing costs and improving efficiency. Lithium hydroxide is increasingly preferred for high-energy-density battery applications.
The Patent Portfolio
TerraLithium's technology is protected by an extensive, affirmed portfolio of 40+ U.S. patents covering core technologies. The company's patents cover both the DLE process and the direct lithium hydroxide conversion technology.
The strength of this intellectual property portfolio was validated by the Patent Trial and Appeal Board of the United States Patent and Trademark Office in 2020 and 2021, which affirmed the validity of TerraLithium's patent claims in multiple decisions.
The Path Forward: From Demonstration to Commercial Production
Next Steps
The joint venture's immediate focus is on demonstrating that commercial application is both technically feasible and economically viable at scale. The technical milestones achieved in Calipatria and Brawley provide validation, but significant work remains.
The results from the demonstration phase will be used to inform future engineering, scale-up assessments, and project planning. BHE Renewables is working toward a potential decision on commercialization in 2026.
Commercial Production Plans
Upon successful demonstration, BHE Renewables plans to build, own, and operate commercial lithium production facilities in Imperial County. The joint venture also plans to license the technology and develop commercial lithium production facilities outside the Imperial Valley.
TerraLithium plans to develop lithium production facilities beyond the Imperial Valley to meet the global demand for more sustainable lithium. The company is open to partnering with domestic and international developers who share its vision of responsible lithium production.
Scaling Challenges
Scaling DLE technology from demonstration to commercial production presents several challenges. These include:
Infrastructure: Commercial production facilities will require significant capital investment and infrastructure development.
Permitting: Lithium extraction projects in California require extensive permitting, including environmental impact assessments and community consultation.
Technology Scale-Up: While the technology has been validated at demonstration scale, scaling to commercial production will require engineering refinements and optimization.
Market Conditions: The commercial viability of lithium production depends on lithium prices, which are subject to market fluctuations.
Community Engagement: Ensuring that the benefits of lithium production are shared with the Imperial Valley community and that environmental concerns are addressed will be critical for long-term success.
Conclusion: A Milestone for the Energy Transition
The June 22, 2026 announcement from TerraLithium and BHE Renewables marks a significant milestone in the development of a domestic, responsible lithium supply chain in the United States. The successful production of lithium chloride, battery-grade lithium carbonate, and lithium hydroxide from geothermal brines in California's Imperial Valley demonstrates that direct lithium extraction technology is not just a laboratory curiosity but a commercially viable pathway to sustainable lithium production.
As Jeff Alvarez noted, "Developing a secure supply of high-purity lithium will help meet the growing demand for electrification and reliable storage, creating optionality and confidence in our energy future". The partnership between Occidental and Berkshire Hathaway Energy brings together the technical expertise, financial resources, and operational experience needed to transform the Imperial Valley into a global hub for responsible lithium production.
The stakes are high. As the world transitions to electric vehicles and renewable energy storage, the demand for lithium will continue to grow. The ability to produce this critical mineral domestically, in an environmentally responsible manner, is essential for energy security, economic development, and climate action.
The Imperial Valley, long burdened by economic challenges and environmental degradation, now stands at the threshold of a new era. "Lithium Valley" has the potential to become a model for sustainable resource development—one that creates jobs, strengthens communities, and powers the clean energy transition.
The milestones achieved in Calipatria and Brawley are just the beginning. As the joint venture moves from demonstration to commercial production, the world will be watching closely. If successful, this could be the template for a new generation of lithium production—faster, cleaner, and more responsible than anything that has come before.
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