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Neptune Energy has launched its second pilot plant dedicated to extracting lithium from subterranean brine at its site in Steinitz, Saxony-Anhalt, Germany. The project marks another step forward in the company鈥檚 ambition to produce sustainable, domestically sourced lithium for use in energy storage technologies.

Following approval from the regional mining authority, Neptune has begun testing a range of direct lithium extraction (DLE) technologies through several pilot projects expected to continue through the first quarter of 2026. These projects use brine extracted from existing natural gas wells in the Altmark region. The lithium, dissolved in the brine, is recovered through ion exchange and adsorption processes.

Earlier success in the program came at the end of 2024, when Neptune, in collaboration with French technology provider Geolith, successfully extracted lithium from geothermal water. In partnership with KBR Inc., Neptune also produced the first lithium carbonate from the Altmark at a battery-grade purity level of 99.9%.

鈥淲e are collecting crucial data from our pilot operations to help define the most efficient and sustainable technical approach for future lithium production,鈥� said Andreas Scheck, managing director of Neptune Energy.

The second pilot plant features technology supplied by California-based Lilac Solutions. The company鈥檚 modular, containerized system directly extracts lithium from the brine and processes it on-site into battery-grade lithium carbonate. The plant鈥檚 construction was completed at the end of May, and test operations began in early June. This current pilot phase will run until the end of July.

鈥淲e鈥檙e proud to partner with Neptune to demonstrate that sustainable lithium production is feasible in the Altmark,鈥� said Raef Sully, CEO of Lilac Solutions. 鈥淥ur technology can support Germany鈥檚 future lithium supply needs.鈥�

The Altmark is believed to be one of Europe鈥檚 most significant lithium deposits. Geological surveys dating back to the 1970s first identified its potential during natural gas exploration. Experts estimate that the area could yield around 70 million tonnes of lithium carbonate. When scaled commercially, it may produce up to 25,000 tonnes annually鈥攅nough to power batteries for approximately 500,000 electric vehicles each year.

鈥淟ithium is a critical raw material for electric vehicles and the broader energy transition,鈥� said Axel Wenke, director of new energy at Neptune Energy. 鈥淭he Altmark provides a unique combination of geological resources, infrastructure, and expertise to reduce Germany鈥檚 reliance on imported materials.鈥�

Neptune, active in the Altmark since 1969, employs about 50 people locally in natural gas production and facility decommissioning. The new lithium initiative leverages this legacy, positioning the region as a model for energy transition and economic revitalization.