LilacSolutions is a US-based lithium resource extraction technology research and development company founded in January 2016, dedicated to achieving sustainability in lithium mining.
Lilac's new ion exchange technology can increase lithium production from brine resources while significantly reducing brine usage, lowering capital expenditure, and improving lithium extraction efficiency.
According to Lilac's plan, the funds will be used to increase the company's ion exchange technology production, expand its engineering and field operations teams, and deploy the technology globally. This new funding injection will accelerate its technology deployment.
According to reports, Lilac's latest round of financing was jointly participated in by BMW, SK Group, and Sumitomo Group's investment arm Presidio Ventures, among others. BMW did not disclose the specific amount of its investment.
BMW's investment in Lilac is aimed at lithium resources, in order to ensure a stable supply of key resources for the lithium batteries used in electric vehicles.
Kasper Sage of BMW WiVentures, BMW's venture capital arm, stated, "Lilac's technology holds promise as a new extraction method that allows people to obtain more lithium in a greener way."
Since 2021, lithium resources have been in short supply, and lithium salt prices have been rising steadily. The lithium industry chain will continue to face tight supply in the second half of 2021. From 2022 to 2025, the unbalanced and insufficient development of lithium resources and the ever-increasing global demand for lithium batteries will become the main contradictions in the lithium industry.
To secure a stable future supply of lithium, the BMW Group signed a multi-year procurement contract worth approximately €285 million (about RMB 2.2 billion) with Livent in April this year. Starting in 2022, Livent will directly supply lithium to the BMW Group's battery cell manufacturers.
Back in late 2019, BMW also signed a long-term supply agreement with Ganfeng Lithium for €540 million, agreeing to supply the types and quantities of lithium chemical products to BMW's designated battery or cathode material suppliers from 2020 to 2024.
Having signed long-term contracts with several traditional lithium miners, BMW's latest investment in Lilac aims to proactively identify pathways to improve lithium production efficiency from a technological perspective.
