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Neptune Energy’s Altmark Lithium Pilot Phase II Advances Adsorption-Based DLE for European Battery Supply
Neptune Energy launches Pilot Phase II for lithium extraction in the Altmark: paving the way for European battery supply
Neptune Energy has begun the second pilot phase of its Altmark Lithium Extraction Project (ALE). After a broad evaluation of Direct Lithium Extraction (DLE) technologies in pilot phase I, the company is now focusing on an adsorption process and testing various adsorbent materials together with the Fraunhofer Institute for Energy Infrastructures and Geotechnologies (IEG). The project aims to recover lithium from thermal deep groundwater in northern Saxony-Anhalt economically and with environmental safeguards , a step toward regional supply chains for battery raw materials in Europe.
Project status and technical objectives
A project-related resource of around 43 million tonnes of lithium carbonate equivalent (LCE) has been identified in the Altmark. The lithium is dissolved in thermal water at depths between approximately 3,000 and 4,000 metres. Neptune Energy plans to produce this thermal water and extract the dissolved lithium using DLE technologies. Following pilot phase I trials, adsorption was chosen as the most suitable method for the specific chemical and thermal conditions on site.
The pilot plant, developed with Fraunhofer IEG, can process up to 1,000 litres of thermal water per day. A notable feature is the oxygen-free extraction environment and the use of three adsorbent columns operating simultaneously. This setup allows adsorption and desorption to run almost concurrently, increasing test efficiency and enabling rapid comparisons of different adsorbent materials.
Adsorption process: how it works and its advantages
In the adsorption process, specialised adsorbent materials selectively bind lithium ions from the thermal water to surfaces or within pore structures. After adsorbent saturation, desorption occurs — typically via pH adjustment or a solvent/salt extraction step — producing a concentrated lithium solution, typically lithium chloride. This intermediate can be processed into marketable battery-grade chemicals such as lithium carbonate or lithium hydroxide monohydrate.
Key advantages of adsorption over conventional evaporation ponds include:
- Faster process cycles and smaller land footprint.
- Higher selectivity against competing ions (with appropriate adsorbents).
- Lower water consumption and greater process control, especially in temperate regions.
- Feasibility for integration into closed industrial process chains.
Partners, materials and pilot programme
For the first testing phase, Neptune selected Evonik Catalysts to supply an adsorbent material that showed stability and performance in preliminary trials. Evonik also contributes application and process expertise on site. Fraunhofer IEG is responsible for pilot plant construction, operation and systematic evaluation of test data.
Pilot phase II will evaluate various adsorbent materials and operating parameters in successive test campaigns. Key performance indicators include adsorption capacity, selectivity versus sodium, calcium and other dissolved salts, regeneration cycles, material stability at high temperatures and in the presence of typical trace elements, and adsorbent lifecycle costs. Concurrently, desorption steps and conversion to lithium chloride are being optimised to enable seamless scale-up to industrial plants.
Scaling outlook and timetable
Neptune Energy aims to start commercial lithium production from around 2030, ramping up toward a target of up to 25,000 tonnes LCE per year in the 2030s , enough lithium for batteries for roughly 500,000 electric vehicles per year. Pilot phase II will provide crucial data for adsorbent selection, process parameters and the design of a potential industrial facility.
Main scaling questions include:
- Economic viability at full scale (capital and operating costs).
- Raw material and manufacturing capacity for large-scale adsorbent production.
- Operational stability over years (degradation, fouling, chemical changes).
- Integration with production infrastructure, water recycling and regional logistics.
Resource resilience and European value chain
The ALE project is explicitly positioned by Neptune as a strategic contribution to European raw material resilience. Europe’s dependence on non-European lithium suppliers is a recognised risk for the battery and EV industry. Domestic production of lithium carbonate or lithium hydroxide could shorten supply chains, reduce logistical risks and create regional value — from processing to battery manufacturing.
However, the 25,000 t LCE/year target is moderate in the context of global lithium demand; it remains significant as an ambition to establish a domestic resource base combined with industrial localisation and technology development in DLE and battery value chains.
Environmental, water and emissions considerations
Lithium recovery from thermal water raises specific environmental and water-management issues. Unlike large solar evaporation projects in arid regions, the Altmark scenario involves producing thermal water from several kilometres depth. Relevant environmental aspects include:
- Thermal and chemical alteration of produced water before reinjection or discharge.
- Protection of shallower groundwater resources from contamination.
- Well integrity to prevent uncontrolled fluid migration.
- Energy demand and CO2 footprint of production and processing.
- Management of by-product streams and residues (e.g. concentrated brines, spent adsorbents).
Neptune and Fraunhofer highlight controlled, closed-loop testing in the pilot plant and oxygen-free extraction as measures to reduce corrosion and oxidation risks. Extensive environmental assessments, permitting and monitoring will be needed for later industrial deployment.
Economic feasibility depends on several drivers: lithium price trajectories, capital and operating expenditures for DLE plants, energy costs, regulatory conditions and public incentives, and local infrastructure. Government support or clear regulatory frameworks can speed projects that contribute to strategic raw material security.
Politically, the Altmark initiative exemplifies national efforts to develop critical raw materials within Europe. Such projects can support reindustrialisation, create jobs and build technological capability — provided environmental safeguards and social acceptance are addressed.
Despite favourable pilot plans, several risks and uncertainties remain:
- Technological readiness: whether adsorption-based DLE will achieve the robustness and economics required under long-term field conditions.
- Material and supply chain constraints: large-scale demand for adsorbent materials and process chemicals could create new dependencies.
- Permitting and social acceptance: local permitting, environmental impact assessments and community consent can cause delays.
- Market volatility: lithium price fluctuations affect return on investment and financing conditions.
Outlook: implications for the DLE sector
Pilot phase II in the Altmark is pertinent to the DLE sector because it provides real-world tests in geochemically challenging conditions. Findings on adsorbent selection, process integration and oxygen-free operation will inform other European and international projects. If successful, the Altmark project could become a blueprint for integrating geothermal resource use and lithium extraction — a synergy that offers potential co-benefits, such as simultaneous heat or power utilisation and production of critical raw materials.
Conclusion
Neptune Energy’s launch of pilot phase II in the Altmark marks a significant step toward regional lithium production in Europe. Focusing on adsorption and partnering with Fraunhofer IEG and Evonik demonstrates a research-driven approach to process development. Whether the project overcomes technical, economic and environmental hurdles will be decided in the upcoming test phase. If scalable, the Altmark could become a key European site for battery raw materials and an innovation hub for DLE technologies.
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