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A Rio Tinto subsidiary has entered into a non-binding memorandum of understanding with Reed Advanced Materials (RAM) to explore the potential of ELi lithium processing technology.

The agreement signals an early step in assessing ELi’s commercial viability, particularly its capacity to lower operating costs in lithium hydroxide production by replacing bulk reagents with electricity in a chlor-alkali cell.

“We are naturally excited to collaborate with Rio Tinto to explore the potential to bring this technology closer to market,” Neometals managing director Chris Reed said.

“We are confident ELi can be an ideal complement to Rio Tinto’s direct lithium extraction (DLE) technologies to further enhance the value of their Tier 1 portfolio.”

The partners intend to explore opportunities for optimisation testwork and updates to process design criteria that may support the development of a demonstration-scale plant.

If mutually agreed, the collaboration could extend to include design, engineering and cost estimation work in Argentina.

The agreement also opens the door for extended ELi trials that could progress the technology to a readiness level suitable for real-world application.

RAM, the 70:30 joint venture between Neometals and Mineral Resources, has previously trialled Rio Tinto’s Rincon brines using the ELi process.

The trials showed successful results in purification and 1000-hour pilot electrolysis tests across 2023 and 2024, producing high-purity lithium hydroxide monohydrate crystals.

While the MoU is non-binding in nature, it includes enforceable provisions around confidentiality and intellectual property.

The agreement is set to continue for eight months, unless extended or terminated by mutual consent.