A cleantech startup in the U.S. may soon upend the global lithium trade, a move that would leave many African lithium producers, once hailed as future tech powerhouses, on the sidelines.
Lilac Solutions, based in Oakland, is developing a method to extract lithium from briny sources such as oilfield wastewater and salt lakes, rather than traditional mining.
According to a statement by Lilac Solutions, the company successfully completed its lithium extraction pilot at Utah’s Great Salt Lake, achieving 87% lithium recovery and 99.97% impurity rejection, surpassing design targets.
The planned commercial facility will produce 5,000 tonnes per annum of lithium carbonate equivalent, doubling U.S. lithium output.
If successful, this approach could dwarf the export-driven strategies of African nations relying on spodumene and concentrate production.
Lithium, often called the “white gold” of the energy transition, is essential for powering the modern world. It’s a key component in rechargeable batteries used in electric vehicles, smartphones, and renewable energy storage systems, making it crucial to global efforts to shift toward cleaner, low-carbon energy solutions.
According to a report by Forbes, Lilac is raising around $250 million to build its first commercial facility in Nevada and Utah.
At the Great Salt Lake, the company expects to produce 5,000 metric tons of lithium per year by 2028. Lilac claims its ion-exchange technology can recover more than 90% of lithium from brine while cutting construction costs by half.
This model offers compelling advantages: lower capital costs, reduced environmental footprint, and proximity to end markets. Meanwhile, the U.S. federal government is backing domestic lithium projects through direct investments, accelerating America’s push to reduce its dependence on Chinese-controlled supply chains.
If Lilac’s approach scales, the U.S. could pivot from importer to a top-tier lithium supplier—potentially overshadowing many African producers who depend heavily on export earnings tied to conventional mining.
Africa’s lithium exporters may face a reckoning
Zimbabwe, Africa’s leading lithium exporter, shipped 586,197 tonnes of spodumene concentrate in the first half of 2025, up from 451,824 tonnes during the same period in 2024.
Spodumene concentrate is a lithium-rich mineral product that serves as a key raw material in the production of lithium carbonate and lithium hydroxide, which are essential for manufacturing rechargeable batteries used in electric vehicles, smartphones, and renewable energy storage systems.
Though exports have risen, most African producers remain locked into selling raw or minimally processed lithium, primarily to Chinese refiners. The continent holds about 6% of global lithium reserves, with significant deposits in Zimbabwe, the Democratic Republic of Congo, Mali, Ghana, and Namibia.
Many of these nations rely heavily on lithium export revenues. Zimbabwe, for instance, earned a record $600 million in lithium exports in 2024. But governments now worry that technological disruption from direct lithium extraction (DLE) could erode their competitive edge unless they move up the value chain into refining and battery component manufacturing.
If Lilac’s model proves viable, it could trigger a fundamental reshuffling of lithium geopolitics. Countries that once expected to profit from mining might find themselves edged out by energy economies that extract minerals more cleanly and flexibly.
Africa’s window of opportunity is narrowing fast, it must invest in refining, processing, and innovation before old assumptions about resource control are overturned.
