A Small Plant With Big Implications for Europe’s Lithium

Runcorn facility produces battery-grade lithium at small scale, highlighting a potential new supply route for Europe’s battery industry

14 Dec 2025

Europe has entered a new phase in its search for domestic lithium supply with the launch of its first commercial direct lithium extraction facility, signalling cautious progress beyond pilot projects and laboratory trials.

The milestone is marked by the commissioning of a plant in Runcorn, north-west England, developed by Watercycle Technologies. The facility produces battery-grade lithium carbonate from liquid sources such as underground brines and industrial wastewater. Output is currently measured in hundreds of kilograms per month, according to reports, with volumes expected to rise as the technology is refined.

Direct lithium extraction, or DLE, has long been promoted as a possible alternative to conventional methods that rely on large evaporation ponds and lengthy processing cycles. Those techniques have proved difficult to deploy in Europe because of climate conditions, land constraints and environmental regulation, leaving the region heavily dependent on imports from South America and Asia.

DLE instead extracts lithium directly from liquid streams using a continuous process, significantly shortening production timelines. Supporters argue this makes it better suited to Europe’s regulatory environment and allows lithium production to be integrated into existing industrial sites.

Industry executives describe the Runcorn project as a proof of concept rather than a solution to Europe’s supply challenge. While commercial operation shows the technology can function outside controlled pilot settings, current output remains small compared with the needs of battery manufacturers and electric vehicle producers.

The project comes as demand for lithium accelerates. Battery makers across Europe are expanding capacity in response to tighter emissions rules and national targets for electric vehicle adoption. Policymakers have also highlighted lithium as a strategic raw material, increasing pressure to develop local supply chains.

Investors and manufacturers are increasingly focused on projects that demonstrate real-world performance, even at modest scale. Commercial DLE facilities could, over time, provide supplementary supply and reduce exposure to global price swings and supply disruptions.

Significant challenges remain. Scaling up production, lowering costs and proving long-term reliability will be critical if DLE is to play a meaningful role. Even so, the Runcorn plant marks a shift in momentum. What was largely experimental is now operating commercially, offering a tentative new option for Europe’s evolving battery materials sector.