Lilac wins first commercial DLE environmental permit in South America

Argentina’s Catamarca Ministry of Mining has approved the Kachi Lithium Brine Project’s environmental impact declaration, giving Lilac Solutions its first commercial technology permit in South America and the region’s first commercial-scale DLE approval with brine reinjection. The decision moves Kachi into engineering work and strengthens Lilac’s case for broader deployment of its ion exchange technology.

Why it matters: - The approval gives Lilac Solutions a major regulatory win in one of the world’s most closely watched lithium regions. - Kachi becomes one of a very small number of fully permitted, large-scale lithium brine projects globally. - The permit also sets a regional precedent for commercial-scale direct lithium extraction with brine reinjection. - The decision supports a lower-land-use extraction model that returns more than 99% of extracted brine to the reservoir.

What happened: - The Catamarca Ministry of Mining issued the Environmental Impact Declaration for the Kachi Lithium Brine Project in Catamarca Province, Argentina. - Kachi is being developed by Lake Resources in partnership with Lilac Solutions using Lilac IX technology. - Lilac holds a 20% equity stake in the project. - The approval marks Lilac’s first commercial technology permit in South America. - The approval is the first commercial-scale DLE permit with brine reinjection in South America.

The details: - The DIA confirms Kachi’s engineering design complies with the environmental and social standards of Catamarca Province and Argentina. - The permit validates that brine processed through Lilac IX remains safe for reinjection. - Lilac says its process uses minimal land and delivers the lowest water consumption of any approved DLE project in Latin America. - Kachi is located on the Salar de Carachi Pampa in Catamarca Province. - Lake Resources estimated the lithium resource at 11.1 million tonnes of lithium carbonate equivalent in June 2025. - Phase 1 targets 25,000 tonnes per annum of lithium carbonate equivalent over a 25-year mine life. - The project is designed to supply batteries for about 550,000 electric vehicles per year and 14 million vehicles over the life of the project. - Kachi is designed to produce battery-grade lithium carbonate on site without further refining or processing. - The project is now moving into Front End Engineering and Design, including further engineering planning and commercial activities.

Between the lines: - The permit helps de-risk Lilac’s commercial model by showing regulators accepted both the extraction process and reinjection approach. - The approval could matter beyond Kachi because it gives other lithium projects a reference point for environmental review in South America. - Lilac is positioning the result as proof that its ion exchange approach can scale under stricter environmental standards. - The company is also trying to show momentum across its pipeline, not just at Kachi.

What’s next: - Kachi will advance through FEED as engineering and commercial work continue. - Lilac is also advancing its first commercial facility at the Great Salt Lake in Utah. - The Utah project’s Phase 1 is designed for 5,000 tonnes per annum of lithium carbonate equivalent. - A planned Phase 2 would lift total output there to 20,000 tonnes per annum of lithium carbonate equivalent. - Lilac recently received a $100 million DOE grant to support the Utah Phase 1 project. - Lilac is working toward a final investment decision for the Utah facility.

The bottom line: - Lilac’s Argentina permit is both a commercial milestone and a regulatory proof point for direct lithium extraction with reinjection.