Intrepid Potash announced that a pilot run at its Wendover, Utah, facility produced battery‑grade lithium carbonate from magnesium‑chloride brine. The test achieved a 92.9% lithium extraction rate, produced lithium chloride with purity above 99.5%, and refined the product to lithium carbonate with a purity of at least 99.5%, meeting key battery‑manufacturing specifications.
The results confirm the feasibility of a planned 5,000‑metric‑ton lithium extraction plant that will use Intrepid’s existing evaporation infrastructure. By converting a low‑margin brine by‑product into a high‑margin commodity, the company can monetize lithium while keeping its core potash and specialty fertilizer operations intact.
Intrepid’s partnership with Aquatech International and Adionics brings process‑design expertise and direct lithium‑extraction technology. The collaboration positions the company to capture a share of the domestic battery‑grade lithium market while diversifying revenue streams and reducing exposure to volatile potash prices.
Financially, Intrepid has a debt‑free balance sheet and strong liquidity. The company’s Q1 2025 earnings beat expectations, with EPS and revenue surpassing analyst forecasts, but recent periods have shown losses, underscoring the importance of the lithium project as a future growth lever.
CEO Kevin Crutchfield highlighted the strategic timing of the project, noting that the U.S. push for domestic lithium production and Intrepid’s existing infrastructure make this an opportune moment to enter the battery‑grade lithium market. The company plans to pursue a final investment decision in 2026, aiming to become one of the first U.S. projects to supply battery‑grade lithium carbonate.
The lithium test aligns with broader U.S. policy to reduce reliance on imported critical minerals. By producing battery‑grade lithium carbonate domestically, Intrepid could capture a share of the growing electric‑vehicle battery supply chain, potentially creating a high‑margin revenue stream that complements its potash operations.
Analysts have expressed caution regarding Intrepid’s valuation, but the lithium milestone offers a tangible growth catalyst that could shift investor perception.
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