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Mining companies are showcasing new technologies which they say could extract more lithium – a key ingredient for electric vehicle (EV) batteries – from South America’s vast, dry salt flats with lower environmental impacts.

But environmentalists question whether the expensive technology is ready to be rolled out at scale, while scientists warn it could worsen the depletion of scarce freshwater resources in the region and say more research is needed.

The “lithium triangle” – an area spanning Argentina, Bolivia and Chile – holds more than half of the world’s known lithium reserves. Here, lithium is found in salty brine beneath the region’s salt flats, which are among some of the driest places on Earth.

Lithium mining in the region has soared, driven by booming demand to manufacture batteries for EVs and large-scale energy storage.

Mining companies drill into the flats and pump the mineral-rich brine to the surface, where it is left under the sun in giant evaporation pools for 18 months until the lithium is concentrated enough to be extracted.

The technique is relatively cheap but requires vast amounts of land and water. More than 90% of the brine’s original water content is lost to evaporation and freshwater is needed at different stages of the process.

One study suggested that the Atacama Salt Flat in Chile is sinking by up to 2 centimetres a year because lithium-rich brine is being pumped at a faster rate than aquifers are being recharged.

    Lithium extraction in the region has led to repeated conflicts with local communities, who fear the impact of the industry on local water supplies and the region’s fragile ecosystem.

    The lithium industry’s answer is direct lithium extraction (DLE), a group of technologies that selectively extracts the silvery metal from brine without the need for vast open-air evaporation ponds. DLE, it argues, can reduce both land and water use.

    Direct lithium extraction investment is growing

    The technology is gaining considerable attention from mining companies, investors and governments as a way to reduce the industry’s environmental impacts while recovering more lithium from brine.

    DLE investment is expected to grow at twice the pace of the lithium market at large, according to research firm IDTechX.

    There are around a dozen DLE projects at different stages of development across South America. The Chilean government has made it a central pillar of its latest National Lithium Strategy, mandating its use in new mining projects.

    Last year, French company Eramet opened Centenario Ratones in northern Argentina, the first plant in the world to attempt to extract lithium solely using DLE.

    Eramet’s lithium extraction plant is widely seen as a major test of the technology. “Everyone is on the edge of their seats to see how this progresses,” said Federico Gay, a lithium analyst at Benchmark Mineral Intelligence. “If they prove to be successful, I’m sure more capital will venture into the DLE space,” he said.

    More than 70 different technologies are classified as DLE. Brine is still extracted from the salt flats but is separated from the lithium using chemical compounds or sieve-like membranes before being reinjected underground.

    DLE techniques have been used commercially since 1996, but only as part of a hybrid model still involving evaporation pools. Of the four plants in production making partial use of DLE, one is in Argentina and three are in China.

    Reduced environmental footprint

    New-generation DLE technologies have been hailed as “potentially game-changing” for addressing some of the issues of traditional brine extraction.

    “DLE could potentially have a transformative impact on lithium production,” the International Lithium Association found in a recent report on the technology.

    Firstly, there is no need for evaporation pools – some of which cover an area equivalent to the size of 3,000 football pitches.

    “The land impact is minimal, compared to evaporation where it’s huge,” said Gay.

    A drone view shows Eramet’s lithium production plant at Salar Centenario in Salta, Argentina, July 4, 2024. (Photo: REUTERS/Matias Baglietto)

    A drone view shows Eramet’s lithium production plant at Salar Centenario in Salta, Argentina, July 4, 2024. (Photo: REUTERS/Matias Baglietto)

    The process is also significantly quicker and increases lithium recovery. Roughly half of the lithium is lost during evaporation, whereas DLE can recover more than 90% of the metal in the brine.

    In addition, the brine can be reinjected into the salt flats, although this is a complicated process that needs to be carefully handled to avoid damaging their hydrological balance.

    However, Gay said the commissioning of a DLE plant is currently several times more expensive than a traditional lithium brine extraction plant.

    “In theory it works, but in practice we only have a few examples,” Gay said. “Most of these companies are promising to break the cost curve and ramp up indefinitely. I think in the next two years it’s time to actually fulfill some of those promises.”

    Freshwater concerns

    However, concerns over the use of freshwater persist.

    Although DLE doesn’t require the evaporation of brine water, it often needs more freshwater to clean or cool equipment.

    A 2023 study published in the journal Nature reviewed 57 articles on DLE that analysed freshwater consumption. A quarter of the articles reported significantly higher use of freshwater than conventional lithium brine mining – more than 10 times higher in some cases.

    “These volumes of freshwater are not available in the vicinity of [salt flats] and would even pose problems around less-arid geothermal resources,” the study found.

    The company tracking energy transition minerals back to the mines

    Dan Corkran, a hydrologist at the University of Massachusetts, recently published research showing that the pumping of freshwater from the salt flats had a much higher impact on local wetland ecosystems than the pumping of salty brine. “The two cannot be considered equivalent in a water footprint calculation,” he said, explaining that doing so would “obscure the true impact” of lithium extraction.

    Newer DLE processes are “claiming to require little-to-no freshwater”, he added, but the impact of these technologies is yet to be thoroughly analysed.

    Dried-up rivers

    Last week, Indigenous communities from across South America held a summit to discuss their concerns over ongoing lithium extraction.

    The meeting, organised by the Andean Wetlands Alliance, coincided with the 14th International Lithium Seminar, which brought together industry players and politicians from Argentina and beyond.

    Indigenous representatives visited the nearby Hombre Muerto Salt Flat, which has borne the brunt of nearly three decades of lithium extraction. Today, a lithium plant there uses a hybrid approach including DLE and evaporation pools.

    Local people say the river “dried up” in the years after the mine opened. Corkran’s study linked a 90% reduction in wetland vegetation to the lithium’s plant freshwater extraction.

    Pia Marchegiani, of Argentine environmental NGO FARN, said that while DLE is being promoted by companies as a “better” technique for extraction, freshwater use remained unclear. “There are many open questions,” she said.

    AI and satellite data help researchers map world’s transition minerals rush

    Stronger regulations

    Analysts speaking to Climate Home News have also questioned the commercial readiness of the technology.

    Eramet was forced to downgrade its production projections at its DLE plant earlier this year, blaming the late commissioning of a crucial component.

    Climate Home News asked Eramet for the water footprint of its DLE plant and whether its calculations excluded brine, but it did not respond.

    For Eduardo Gigante, an Argentina-based lithium consultant, DLE is a “very promising technology”. But beyond the hype, it is not yet ready for large-scale deployment, he said.

    Strong regulations are needed to ensure that the environmental impact of the lithium rush is taken seriously, Gigante added.

    In Argentina alone, there are currently 38 proposals for new lithium mines. At least two-thirds are expected to use DLE. “If you extract a lot of water without control, this is a problem,” said Gigante. “You need strong regulations, a strong government in order to control this.”

    The post Efforts to green lithium extraction face scrutiny over water use  appeared first on Climate Home News.

    Efforts to green lithium extraction face scrutiny over water use 

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    ‘Don’t waste this moment’: Pre-COP must back Pacific priorities; respond to the urgency of the climate crisis

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    NADI, FIJI Sunday 4 October 2026 — As leaders and delegates gather for the Pacific Pre-COP in Fiji and Tuvalu, Greenpeace Australia Pacific is calling on the Australian government to uphold Pacific priorities on fossil fuels and climate finance, and respond to the urgency of the climate and energy crisis by accelerating the just transition away from fossil fuels. 

    The Pre-COP meeting in Fiji and atoll nation Tuvalu is an important milestone on the road to the COP31 climate summit in Türkiye, where Climate and Energy Minister Chris Bowen will take the reins as President of Negotiations. But another coal mine approval in the days before the Pre-COP has left Pacific leaders and civil society exasperated at Australia’s perceived ‘double talk’ and overshadowed the start of talks.

    Speaking from Nadi, Shiva Gounden, Head of Pacific at Greenpeace Australia Pacific, said:
    “This week we must focus on why the Pre-COP is so important. We must listen to Pacific leaders and communities who are sick of Australia’s double talk on climate, and want to see the actions of the most polluting nations respond to the urgency and scale of the crisis we face.

    “Every cyclone, every storm blows with the deadly force of accumulated emissions and gives a warning of what is to come. The Pacific must not become a sacrifice zone for major polluters and fossil fuel corporations.

    “1.5°C remains the scientific, moral and legal temperature limit. The landmark Pacific-led ICJAO ruling is clear — continuing down the fossil fuel path, and failing to align efforts with limiting warming to 1.5°C, is a breach of our international legal obligations. Our communities, our cultures and our very existence are under threat.

    “As Australia prepares to chair the upcoming COP31 talks in partnership with the Pacific, it must do much more to turn empty rhetoric into real action to end the fossil fuel chokehold.”

    Also in Nadi, Dr Simon Bradshaw, COP31 Lead and climate expert at Greenpeace Australia Pacific, said: “The Pacific Pre-COP is a critical milestone on the road to COP31. The Australian government must rise to the moment with concrete plans to accelerate the global transition away from fossil fuels, and respond to communities across the region facing soaring cost of living and the escalating impacts of the climate crisis.

    “This week, the Australian government must deliver more than empty rhetoric. The Prime Minister’s recent keynote address at New York Climate Week acknowledged the urgency of the climate crisis, but failed to mention its cause, fossil fuels. Just last week we saw another new coal mine approval in Australia. This is on top of the 37 fossil fuel approvals by the Albanese Government since elected, despite recognising through the Belém Declaration that returning to 1.5°C is incompatible with new coal, oil and gas.

    “At the Pre-COP, words must be matched with real action to phase out fossil fuels. We can not help decarbonise the world without action at home to halt fossil fuel approvals and phase out coal and gas exports. Don’t waste this important moment to back Pacific leadership and turn commitments into real action, including an immediate end to new fossil fuel approvals, and following other nations in developing a national roadmap away from fossil fuels.”

    ENDS

    Media contact: Kate O’Callaghan in Nadi on +61 406 231 892 (Whatsapp/Signal)

    ‘Don’t waste this moment’: Pre-COP must back Pacific priorities; respond to the urgency of the climate crisis

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    Big banks behind “net zero” alliance continued lending to coal firms

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    Several major banks that helped set up the UN’s now-defunct Net-Zero Banking Alliance (NZBA) in 2021 have since continued to lend money to coal companies, a new report has revealed.

    Bank of America, Barclays, Citibank, Deutsche Bank and Santander were heavily involved in the NZBA and the associated Glasgow Financial Alliance for Net Zero (GFANZ) when it was launched by Mark Carney, then a UN climate envoy and now Canada’s leader, in the run-up to the COP26 climate summit in Glasgow.

    Despite their involvement, data released this week shows those banks and some others did not reduce the amount of money they lent, nor the value of their underwriting, to coal activities between 2022 and 2025. Around half of the NZBA members who were engaged in coal financing over that time increased it and half cut it, according to the report by German environmental research group Urgewald.

    Ana Botín, executive chair of Santander, was a member of the GFANZ CEO principals’ group and said at the time of the NZBA launch that her Spanish bank was “proud to be part of the founding members of this new alliance and to accelerate progress towards net zero”.

    Since then, the report’s data documents that Santander has provided loans and underwriting worth hundreds of millions of dollars each year to coal companies, particularly American coal-power plant operators Duke Energy and the Southern Company. Santander did not respond to a request for comment.

    Urgewald’s research adjusts the value of loans and underwriting provided to coal companies based on how much of a company’s revenues come from the most polluting fossil fuel. So a hypothetical $100 million loan to German utility RWE is valued at $21 million, as 21% of RWE’s revenue is from coal.

    The research does not take account of whether companies are expanding their coal business or phasing it out for greener alternatives. Some banks have said their coal clients need to put in place transition plans by a certain date. Some also say that, by a certain date, they will stop lending money to clients that get more than a set percentage of their revenue from coal.

      Most companies expanding coal are in Asian nations like China, India and Indonesia and are largely financed by banks from their own countries. But there are examples of NZBA founding members supporting companies that are actively prolonging the life of their coal businesses.

      For example, Glencore, a Switzerland-based multinational that gets 4% of its revenue from coal, has just won preliminary regulatory approval to keep on coal mining in Australia’s Hunter Valley until 2045. Last year, the company was supported by loans and underwriting from Bank of America, Citigroup, Santander, Barclays, Deutsche Bank, HSBC and Standard Chartered.

      Good and bad news

      Some NZBA founding members like Swiss giant UBS have reduced their loans and underwriting for coal companies, the data suggests. Others – like Triodos and Kenya Commercial Bank – have provided no support for coal companies since at least 2021.

      Urgewald researcher Hannah O’Neill told Climate Home News that “the banking sector is not moving in one direction. There is a growing divide between banks that are tightening their coal policies and reducing their exposure, and those where coal policies remain weak or where financing continues.”

      Unlike the UN’s Race to Zero campaign, with which it partnered, the NZBA did not require its members to end financing for fossil fuels like coal, leading to accusations by climate campaigners that its rules were too weak.

      Despite this, after Donald Trump’s re-election as US president in November 2024, several North American banks quit the alliance and the NZBA’s requirements were diluted in April 2025. After further withdrawals, the group shut itself down in October 2025.

      Globally, the Urgewald report found that many banks in the European Union, Thailand, Malaysia, India and Taiwan have reduced their coal finance since governments agreed at COP26 to phase down coal power.

      But with Chinese, American, Indonesian and South Korean banks increasing their support, total bank financing for the coal industry has remained broadly the same each year since 2022. 

      “Coal financing is not disappearing – but it is concentrating in banks and markets where coal policies are either missing or weak,” said Heffa Schücking, director of Urgewald.

      Urgewald’s definition of coal companies includes firms and their subsidiaries that explore for, process, trade, transport and mine coal, or burn it in power plants to produce electricity, or manufacture equipment for the coal industry. It does not include companies that use coal to make cement or steel – and an adjustment is made to account for how much of the business model is coal-related.

      Banks defend delays

      At the time of publication, most of the banks named in the report for increasing their coal finance had not responded to requests for comment. But a spokesperson for Deutsche Bank pointed Climate Home News to its May 2026 announcement that it was delaying its requirement for existing clients to present it with transition plans and cut their coal exposure.

      Instead of having to present these plans by the end of 2025, the bank has given them until the end of 2027. They will also have to ensure that their revenue share from thermal coal falls below half by then, the bank added. New clients need energy transition plans to access finance.

      Deutsche Bank said at the time it was delaying its requirements because of the “increasingly complex regulatory environment as well as differing speeds of energy transition in various regions beyond what was anticipated by Deutsche Bank in 2023”.

      Big banks’ lending to coal backers undermines Indonesia’s green plans 

      A spokesperson for Barclays told Climate Home News: “Many companies in this report are diversified energy or mining companies. We do not provide financing to companies that generate more than 30% of revenues from thermal coal mining or power generation, and we will phase out all financing by 2035.”

      The Barclays spokesperson added: “Barclays is financing an energy sector in transition, providing finance to meet current energy needs and also financing the scaling of clean energy. Over the past three years, we have facilitated more than $300 billion of sustainable and transition finance, including billions to cleaner energy projects, and invested millions into climate tech.”

      The post Big banks behind “net zero” alliance continued lending to coal firms appeared first on Climate Home News.

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      As COP31 co-host, Australia should make its polluters pay for climate damage

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      Harjeet Singh is the global convenor of the Fill the Fund campaign and founding director of the Satat Sampada Climate Foundation. Julie-Anne Richards is strategic campaign lead for the Make Big Polluters Pay campaign in Australia.

      This year, a glacier collapse in Nepal’s Himalayan valleys swept away the lives of at least 1,500 people, with recovery costs of US$5 billion, or 10% of national GDP. But this was not a tragedy for which no one can be blamed. This was a crime with a balance sheet – one whose costs are paid by people who did nothing to cause it, and whose profits are booked by polluting corporations that did everything.

      Across the Pacific, the calculation of injustice is now brutally clear. According to Oxfam Australia, the average yearly GDP loss of Pacific countries from climate disasters has increased four-fold over the last decade, reaching 14.3% of GDP. The number of Pacific people battered by climate disasters has risen by 700% in a decade. Whole villages are being packed up and moved as the sea takes the land beneath them.

        Let’s look at the other ledger. This year, as climate change and an oil shock drove up the cost of living for ordinary families, Woodside – touted as “one of Australia’s biggest winners” from the war in the Middle East – reported revenues jumping nearly 30% to AUD$6 billion in just three months.

        In Australia, Oxfam finds that in 2023-2024, fossil fuel corporations paid only AUD$22.8 billion in corporate income tax – just 5% of their AUD$436 billion in total reported income – while 26 out of 80, or one in every three large fossil fuel corporations, did not pay corporate income tax at all.

        The polluters are not struggling to pay for the damage they cause. They are choosing not to.

        This is the moral obscenity at the heart of the climate crisis: the money exists. It is simply flowing in the wrong direction. And nowhere is that clearer than in the funds the world built to protect the vulnerable, now left to languish.

        Funds struggle to fill their coffers

        The Fund for Responding to Loss and Damage (FRLD) has received US$2.8 billion in requests from 119 countries. And Nepal has sought an urgent US$20 million for immediate needs. Yet the Fund has only US$342 million in total to give.

        The Pacific Resilience Facility – a fund the Pacific designed for itself, to prepare its own communities – sits well short of even its modest US$500 million capitalisation target. And the Adaptation Fund is running on empty. While adaptation needs in developing countries could reach US$387 billion a year by 2030, according to the latest UNEP Adaptation Gap report, the Fund’s resource mobilisation target of a modest US$300 million for 2025 fell far short, with only US$135 million pledged.

        This is a matter of priorities, not of resources. For decades, the world has accepted a simple principle – the polluter pays principle – whether through the OECD, of which Australia is a member, or Europe’s carbon pricing. New York and Vermont have already passed laws to make Big Oil pay into climate superfunds, and ten more US states are moving to follow.

        The idea is neither radical nor new. It’s time to make big polluters pay.

        Comment: After Hormuz, Nepal and wildfires, people want action to make polluters pay

        What is urgently needed is the courage to apply it to the fossil fuel corporations that have spent decades avoiding it. In November, Australia takes up the presidency of the COP31 negotiations, committing to stand shoulder to shoulder with its Pacific neighbours.

        Australia, together with the Turkish COP31 Presidency, must guide and inspire progress at the upcoming climate conference, including on new climate finance pledges by developed countries (which agreed to mobilise at least $300 billion by 2035) and triple the funds available to the FRLD, the Adaptation Fund and the other UN climate funds.

        Rich countries agreed to these goals two years ago at COP29. Yet, the reality is that developing countries’ need for climate finance is in the trillions annually, while developed countries continue to delay providing even what they have already committed. A clear signal recognising the importance of delivering the promised climate finance must come at next week’s Pre-COP in the Pacific, and COP31 in Antalya must go on to deliver against existing promises or risk an irreparable breakdown in trust.

        Time for a climate pollution levy

        Countries must also ensure funding for loss and damage takes its rightful place as the third pillar of climate finance, alongside mitigation and adaptation, in negotiations regarding the UNFCCC climate finance work programme and Article 9 on shifting finance flows towards a low-carbon, resilient world.

        Australia, as President of Negotiations and as a Pacific nation, cannot ask the world to fill these funds while it lets its own coal and gas giants off the hook. Australia should not only stop approving new and expanded coal and gas mines, it should also introduce a Climate Pollution Levy on big coal, oil and gas corporations – a charge on every tonne of carbon pollution they extract and profit from. Independent analysis shows such a levy could raise tens of billions of dollars a year, and can be designed so the cost falls on the corporations, not on households.

        This is not charity – it is compensation. It is the beginning of accountability. And the public is far ahead of its leaders: eight in 10 people worldwide, and a clear majority of Australians, want fossil fuel firms taxed to pay for the damage they cause.

        Fossil fuel expansion threatens COP31 hosts’ credibility, experts warn

        The money must go where the harm lands. A Climate Pollution Levy should feed the funds frontline communities are relying on – fully capitalising the Pacific Resilience Facility this year, replenishing the Adaptation Fund, and delivering the billions the loss and damage fund needs.

        It is essential for these funds to be able to provide grant-based finance that reaches communities directly, not more loans that push drowning nations deeper into debt. With Nepal’s recovery costs estimated at around 10% of the country’s GDP, if we leave it to fend for itself without loss and damage funding, Nepal will likely be saddled with debt and could fail to recover adequately, increasing poverty and inequality.

        We have heard enough empty pledges. We have watched enough funds announced with fanfare, only then to be starved in silence. The era of asking polluters politely is over. Australia, as COP31 president, has a rare chance to prove that the polluter pays principle means something and apply it to those who have profited the most.

        The post As COP31 co-host, Australia should make its polluters pay for climate damage appeared first on Climate Home News.

        As COP31 co-host, Australia should make its polluters pay for climate damage

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