As demand for lithium is expected to grow, driven by electric vehicles (EVs), stationary energy storage, and AI data centers, the concentration of lithium refining capacity in China remains a key supply chain challenge. Against this backdrop, Australian lithium refining technology developer Novalith is developing an alternative to conventional sulfuric acid-based refining processes.
On October 25, ahead of the opening of the International Mining and Resources Conference (IMARC) 2026, MIRU's global team joined approximately 20 participants, primarily from Japan, for a visit to Novalith's research and development (R&D) and pilot facilities in Sydney.
Participants were divided into three groups to tour the R&D laboratories and pilot refining equipment. In addition to a company and technology briefing by CEO Steven Vassiloudis, the team received detailed explanations from the R&D lead on lithium extraction, product quality control, and plans for scaling up the technology.
The visit highlighted that Novalith is pursuing more than a new lithium refining technology. By combining simplified refining processes, the recycling of CO₂ and water, and AI-driven operational optimization, the company aims to establish a competitive lithium refining model outside China.
Eliminating Sulfuric Acid to Produce Battery-Grade Lithium Carbonate from Spodumene
One of the defining features of Novalith's technology is that it does not require the conventional sulfuric acid leaching step widely used in lithium refining.
Conventional hard-rock lithium refining typically involves high-temperature processing and sulfuric acid leaching to extract lithium from ore. The lithium then passes through intermediate products, such as lithium sulfate, before being converted into lithium carbonate or other final products.
These processes can involve multiple stages, substantial reagent consumption, significant capital and operating costs, and waste management challenges.
Novalith has developed a proprietary chemical process designed to selectively extract lithium through fewer processing steps and produce battery-grade lithium carbonate.
Its primary feedstock is spodumene concentrate, a hard-rock lithium mineral mined in Australia and other regions.
Spodumene is generally considered a more established feedstock for commercial lithium production than some alternative resources, including certain clay deposits. Novalith has conducted tests using multiple feedstocks to assess whether its process can consistently extract lithium despite variations in ore type and grade.
According to the company, it has completed more than 10,000 hours of leaching tests, achieving lithium extraction rates of up to 96%. The company also reported extraction rates exceeding 90% in pilot-scale tests using multiple feedstocks.
Novalith further stated that it has produced lithium carbonate with a purity of 99.7%. For battery-grade material, purity alone is not sufficient: impurities such as calcium, magnesium, and iron must also be controlled within specified limits.
To verify product quality, Novalith uses external analytical laboratories, and compares their results with its internal analyses.
Targeting a 30% Reduction in Capital Expenditure and a 55% Reduction in Operating Costs
According to CEO Steven Vassiloudis, Novalith estimates that its technology could reduce capital expenditure (CapEx) by approximately 30% and operating expenditure (OpEx) by approximately 55% compared with conventional sulfuric acid-based refining, based on facilities designed for equivalent production capacity.
Process simplification is central to these anticipated cost savings.
By eliminating sulfuric acid from the process, the technology could reduce the need for equipment and processing stages associated with acid handling and neutralization. Lower reagent consumption, energy use, and waste treatment requirements could also contribute to cost reductions.
Conventional refining projects can involve substantial construction costs and long development timelines. Vassiloudis explained that developing a conventional project, from mine development through construction of a refining facility, can take more than 12 years even under favorable conditions. By combining its refining technology with AI, Novalith aims to shorten the timeline for project development to less than half of that time.
These figures represent the company's estimates and targets. Demonstrating the anticipated cost and time savings at commercial scale will be an important next step.
Current Pilot can produce 2-3 tonnes per year, with a 20-Tonne-per-Year Facility Under Construction
The facility opened to visitors integrates research and development with pilot-scale testing.
In the R&D laboratories, experiments are progressively scaled up from small laboratory reactions to tests using larger reactors. Researchers examine reaction conditions, lithium extraction rates, and impurity behavior for different feedstocks, then use the findings to inform pilot operations.
.Novalith says that its simplified process and impurity control allow it to produce battery-grade lithium carbonate without repeatedly recrystallizing the product.
The current pilot facility has a production capacity of approximately 2 to 3 tonnes per year at full operation. As the next step toward commercialization, the company is currently constructing a refining facility with an annual capacity of 20 tonnes of battery grade lithium carbonate.
During the visit, the company indicated that it was targeting commissioning of the next facility in mid-2027, with mechanical equipment completion targeted for around March 2027.
The new facility is expected to incorporate larger reactors, increased automation, additional instrumentation, and improved integration between processing stages. These improvements will enable the company to collect operational data across the entire process, from feedstock to final product, and use the findings to inform the design of larger commercial facilities.
The company also plans to recover and reuse process water, including wash water, and recycle CO₂ to improve resource and energy efficiency.
Looking further ahead, Novalith outlined a strategy to modularize its equipment and expand capacity by replicating standardized units. Rather than constructing a single large facility from the outset, this approach could allow production capacity to grow in stages, potentially reducing construction time and investment risk.
Proprietary AI Platform SION™ Aims to Optimize Refinery Design and Operations
Alongside its refining process, another key element of Novalith's strategy is its proprietary AI platform, SION™.
SION is designed to use digital-twin technology to support refinery design, operational preparation, commissioning, and ongoing process optimization.
Lithium ore grades and impurity levels can vary considerably. If operating conditions cannot be adjusted to reflect changes in feedstock composition, lithium recovery rates may decline or the final product may fail to meet quality specifications.
SION is designed to integrate data from sensors, analytical instruments, and other sources to monitor equipment conditions and changes in the refining process. By simulating operating scenarios in a digital environment, the platform aims to identify potential problems in advance and recommend adjustments to operating conditions.
For example, if incoming feedstock contains less lithium than usual, the digital twin could be used to predict how the process might respond and assess potential adjustments to reagent input, reaction time, or other operating parameters. The platform aims to provide operators with supporting data and explanations to inform their decisions.
Another feature is the potential to transfer knowledge gained at one facility to other internal facilities. Novalith envisions sharing operational data and process know-how in real-time across its plants to accelerate commissioning and improve operational performance.
If AI can help operators manage process adjustments that have traditionally relied heavily on the experience of engineers and plant personnel, it could contribute to more stable operations and more efficient workforce training.
Vassiloudis also indicated that SION could potentially be applied to industries beyond lithium refining, including copper and other critical minerals. At the time of the visit, however, demonstrating and commercializing the technology for lithium refining remained the company's primary focus.
Competing with China Requires More Than Technology: Cost and Deployment Speed Matters
China's dominance remains a central consideration in evaluating the competitiveness of lithium refining technologies.
China has developed substantial refining and battery-material production capacity, supported by an integrated supply chain spanning raw material procurement and downstream manufacturing. Lithium concentrate mined in Australia and elsewhere is frequently shipped to China for refining before being supplied to battery-material producers around the world.
Novalith's CEO identified the concentration of refining capacity in China as a supply chain challenge. The company aims to develop technology that can support competitive refining facilities in global jurisdictions such as Australia, the United States, and Asia.
Its strategy is not simply to replicate conventional Chinese refining facilities in other countries. Instead, Novalith aims to combine its proprietary chemical process, which is designed to reduce equipment requirements and reagent consumption, with AI-driven improvements in construction and operational efficiency.
This approach could help make refining capacity more viable in different regions.
Ultimately, the company's anticipated cost advantages will need to be validated at commercial scale. Economics will depend on actual operating conditions, including feedstock grade, plant utilization, reagent and energy prices, and the consistency of product quality.
The planned 20-tonne-per-year facility will be an important step toward testing these factors and gathering the data needed to design larger refining plants.
Q&A: Cost Competitiveness, Critical Minerals, CO₂ Recycling, and Technology Licensing
During the facility visit, participants asked questions about Novalith's cost competitiveness, the recovery of minerals other than lithium, CO₂ use and recycling, and the potential licensing of its technology.
Q. How does Novalith plan to compete with Chinese refiners and brine-based lithium production?
Novalith identified its proprietary chemical process and AI platform, SION, as key differentiators in a market where Chinese companies have established strong competitive positions.
According to the company's estimates, its technology could reduce capital expenditure by approximately 30% and operating costs by approximately 55% compared with conventional sulfuric acid-based refining.
The company also expressed the view that its spodumene-based process could be more cost-competitive than brine-based refining, which is generally considered a low-cost production route.
However, hard-rock and brine-based processes involve different feedstocks and processing requirements. A meaningful comparison will require an assessment of total costs under equivalent assumptions, from raw material procurement through to the final product.
Q. Can the technology recover other critical minerals, such as tantalum?
Although lithium remains the primary focus, Novalith's R&D team is also investigating potential applications involving other critical minerals, including cesium and rubidium.
The potential to recover additional valuable elements from certain feedstocks could provide another avenue for improving project economics, depending on their composition and the feasibility of separation.
Q. Where does Novalith source its CO₂, and how much can be recycled?
The current pilot facility uses purchased CO₂ supplied in gas cylinders. The company did not provide detailed information during the visit about the original source or production method of this CO₂.
Some of the CO₂ used in the process can be recovered and reused. For the next facility, the R&D lead stated that Novalith aims to recycle more than 90% of the CO₂ within the process.
The technology does not depend on directly capturing CO₂ from the atmosphere. Instead, it aims to reduce the need for external CO₂ supplies through recycling within the refining process. The key environmental improvement of our technology is that it reduces emissions by more than half compared to the conventional process and produces no bulk hazardous wastes.
Q. Will Novalith license its technology to other companies or industries?
Novalith stated that it currently holds several patents and is considering providing its technology to other companies, although potential partners will be selected strategically.
The company sees the combination of its chemical process and AI capabilities as a potential source of value beyond lithium refining. Its AI platform is designed to integrate plant data, optimize processing conditions, and support stable operations.
The CEO suggested that similar approaches could deliver significant cost savings in other industries. However, specific licensing arrangements, target industries, and commercial terms have not yet been disclosed.
The key question is whether Novalith can translate its proprietary chemistry and AI capabilities into a commercially competitive refining model. Demonstrating the process at a larger scale, validating CO₂ recycling performance, and expanding applications to other industries will be important areas to watch.
Conclusion
Novalith is seeking to reshape the economics of lithium refining by combining a sulfuric acid-free chemical process with CO₂ and water recycling and AI-driven operational optimization.
One notable aspect of its approach is the aim to simplify not only the refining process itself but also facility construction and day-to-day operations. Establishing refining capacity outside China involves challenges beyond equipment and reagent costs, including access to skilled personnel, commissioning, and compliance with environmental regulations.
Novalith's strategy is to address these challenges through the integrated application of proprietary chemical technology and AI.
Nevertheless, the facilities demonstrated during the visit remain at the pilot stage. Stable operation at commercial scale, actual production costs, and the effectiveness of CO₂ and water recycling will require further validation.
The next major milestone will be the planned 20-tonne-per-year facility. Its performance will validate SION’s ability to support the design, delivery and operation of lithium refineries that consistently produce battery-grade lithium carbonate, paving the way for full-scale commercial deployment.
Can the company help reduce the concentration of lithium refining in China and support the development of new supply chains in Australia, the United States, Asia, and other markets?
Novalith's progress will be worth watching as an example of how advances in refining chemistry and digital technologies could contribute to a new model for critical mineral supply.
