From Brine to Battery: Europe’s Lithium Shift

Direct extraction projects move from pilots to early execution as the region seeks secure, lower-carbon battery materials

29 Sep 2025

Europe’s lithium industry is beginning to move beyond pilot projects as direct lithium extraction, or DLE, advances towards commercial use across the region. After years of technical testing, companies and policymakers are increasingly focused on whether domestic brine resources can be converted into reliable supply for batteries and electric vehicles.

The shift reflects growing urgency. Europe plans a sharp increase in battery manufacturing over the next decade but remains heavily dependent on imported lithium, leaving supply chains exposed to geopolitical risk, transport disruption and volatile prices. DLE is seen as a possible alternative to conventional mining, using chemical processes to extract lithium from underground brines more quickly and with a smaller surface footprint.

Interest has intensified following recent assessments of lithium potential in Germany. Neptune Energy has said subsurface brines could hold significant quantities of the metal, reinforcing the view that Europe has meaningful domestic resources. The debate has moved from whether lithium exists to how fast projects can be developed and whether they can operate at scale.

Companies are responding with new partnerships and production models. Vulcan Energy is developing projects that combine lithium extraction with geothermal power, aiming to produce battery-grade lithium alongside renewable electricity. The approach is designed to align supply with Europe’s climate targets while improving the economics of early projects.

Technology providers, including Lilac Solutions, argue that the next phase will depend on operational performance rather than concept design. Investors and customers are seeking long-term data to show that DLE processes can run consistently and deliver predictable output.

Supporters say DLE offers structural advantages. Facilities can be smaller and modular, located closer to battery manufacturers, cutting transport costs and emissions. Local supply could also change commercial relationships, placing greater weight on long-term security rather than spot pricing.

Uncertainty remains. Costs vary widely depending on geology, and many extraction technologies are proprietary with limited operating histories. Price volatility in global lithium markets continues to temper investor enthusiasm.

Even so, industry sentiment has become more constructive. DLE is increasingly viewed not as an experimental option but as a practical route to strengthening Europe’s battery supply chain. Early project results will determine whether the technology can underpin a more secure and sustainable source of lithium for the region.