London-listed CleanTech Lithium is advancing its Laguna Verde project in Chile toward the selection of a strategic partner after completing a pre-feasibility study for a large-scale direct lithium extraction operation. The proposed development is designed to produce 15,000 tonnes of battery-grade lithium carbonate per year for 25 years, positioning Laguna Verde as a potential long-life contributor to Chile’s growing lithium industry.
The project carries an estimated initial capital requirement of approximately US$748 million, with projected operating costs of US$5,768 per tonne and an after-tax net present value of around US$960 million. With the technical case now defined at pre-feasibility level, CleanTech’s immediate challenge is no longer proving the project’s broad economic potential but finding a partner capable of helping finance and develop the operation.
Laguna Verde Targets 15,000 Tonnes of Lithium Annually
The proposed Laguna Verde operation would use direct lithium extraction (DLE) rather than conventional evaporation ponds. DLE can potentially reduce the physical footprint of lithium-brine operations and accelerate the extraction cycle. However, commercial success depends on maintaining strong lithium recoveries while controlling reagent consumption, water requirements and the reinjection of depleted brine.
The technology therefore remains central to the project’s economic assumptions. CleanTech will need to demonstrate that the proposed process can maintain consistent performance at commercial scale and produce battery-grade lithium carbonate that meets the specifications required by downstream customers.
Chilean Lithium Contract Clears an Important Regulatory Hurdle
CleanTech has agreed the principal terms for a special lithium operating contract with the Chilean government, representing an important step for the project. Lithium is classified as a strategic mineral in Chile and is subject to state oversight. Securing the framework required to advance development therefore provides Laguna Verde with greater regulatory clarity as it moves toward the next stage.
The agreement does not, however, eliminate the need for further permitting, environmental work and technical development before construction can begin.
CleanTech Brings in Financing Adviser
To help secure the next stage of funding, CleanTech has appointed London-based Cutfield Freeman to identify potential strategic investors and develop a financing structure for the project. The company has raised equity that can support licensing, environmental studies and continued optimisation of the DLE process.
That funding is important for project advancement, but it is relatively small compared with the estimated US$748 million construction requirement. The next financing phase will therefore need to be substantially larger and is likely to require an institutional or industrial partner with both financial capacity and a long-term interest in lithium supply.
Capital Intensity Creates a Major Financing Challenge
Laguna Verde’s estimated capital requirement translates into approximately US$50,000 of initial investment for every tonne of annual lithium-carbonate capacity. That level of capital intensity makes the project’s economics particularly sensitive to lithium prices and the timing of production ramp-up.
The projected US$5,768-per-tonne operating cost will also be closely scrutinised by potential investors and lenders. Any significant increase in operating expenses or delays in reaching planned production could reduce project returns and increase the amount of financing required. For that reason, the transition from the pre-feasibility study to a bankable development plan will be critical.
Strategic Partner Could Provide More Than Capital
CleanTech’s search for a strategic investor does not necessarily have to focus solely on raising equity. A battery manufacturer, chemicals producer or integrated mining company could potentially bring additional value to Laguna Verde through technical expertise, customer qualification and long-term purchasing commitments. An offtake agreement could be particularly important because predictable future sales can strengthen a project’s ability to secure senior debt.
A strategic partner could also help validate the DLE process, support product development and provide access to international lithium markets. This type of industrial partnership could therefore reduce several risks simultaneously rather than simply filling part of the funding gap.
Laguna Verde Moves From Feasibility to Financing
The completion of the pre-feasibility study gives Laguna Verde a quantified development model, but the project remains firmly in the pre-construction phase. The key figures — 15,000 tonnes of annual lithium carbonate production, US$748 million of initial capital and approximately US$960 million of after-tax NPV — provide a framework for potential investors to evaluate the opportunity.
The next major milestone, however, is likely to be strategic rather than another small equity raise. CleanTech must find a partner prepared to support a substantial portion of the US$748 million financing requirement and help convert the technical study into a fully bankable development. If the company can secure an investor with both capital and downstream market access, Laguna Verde could move closer to becoming a significant new source of battery-grade lithium in Chile, while providing an additional potential supply route for the global energy-transition industry.
