SLB Achieves Breakthrough in Lithium Production in Nevada

SLB SLB, an American oilfield services company, has announced a breakthrough in sustainable lithium production at its demonstration plant in Clayton Valley, NV. The company's proprietary technology, which uses direct lithium extraction (DLE), concentration and conversion, accelerates lithium production while minimizing environmental impact.

SLB's solution is 500 times faster than any conventional method, with a significantly smaller footprint in terms of land and water usage. It produces lithium with a recovery rate of 96%.

SLB's DLE Technology Offers Unprecedented Efficiency

The company's innovative approach delivers a complete, end-to-end process that extracts lithium from brine, treats impurities and produces high-purity lithium carbonate or hydroxide. The process uses just 10% of the land required by traditional evaporation methods and returns spent brine to its source, reducing ecological impact. This efficiency translates into faster production, reducing the time from extraction to conversion to mere hours compared to up to 18 months using traditional methods.

Environmental Advantage of SLB's Lithium Extraction Process

Conventional lithium extraction through evaporation leads to significant water loss and environmental disruption, leaving behind salts and minerals. On the contrary, SLB's sustainable solution significantly reduces water usage and minimizes environmental damage. The process enhances sustainability by recycling brine and limiting the use of chemical reagents, making it an eco-friendly alternative to conventional extraction techniques.

SLB Poised for Commercial-Scale Lithium Production

The Clayton Valley demonstration plant validates SLB's technology and positions the company for commercial scalability. With the successful verification of its recovery rates, SLB has achieved the technical milestones required under its agreement with Pure Energy Minerals Ltd. This paves the way for SLB to potentially take full ownership of the Clayton Valley Project, positioning the company as a leader in responsible lithium production.

Lithium is a critical component in producing smartphones, electric vehicles (EVs) and other electrification technologies. SLB's solution is flexible enough to produce lithium chloride, carbonate, or hydroxide, adapting to market needs for different lithium-based products. With this innovation, SLB is set to play a pivotal role in the electrification economy, ensuring faster, more sustainable lithium production to meet the growing demand.

SLB's Zacks Rank & Key Picks

Currently, SLB carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like MPLX LP MPLX, Core Laboratories Inc. CLB and VAALCO Energy, Inc. EGY. While MPLX currently sports a Zacks Rank #1 (Strong Buy), Core Laboratories and VAALCO Energy carry a Zacks Rank #2 (Buy) each.

MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership's robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.

The Zacks Consensus Estimate for MPLX's 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB's expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.

The Zacks Consensus Estimate for CLB's 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company's production outlook seems bright.

The Zacks Consensus Estimate for EGY's 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.

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