Lilac Solutions has been selected by the U.S. Department of Energy to receive a $100 million award to support the construction of a lithium production facility on the Great Salt Lake, a move intended to bolster the domestic supply of critical minerals for advanced batteries. The funding, announced Aug. 20, 2026, via the Department of Energy's Manufacturing Deployment Office, supports a project aimed at becoming one of the first new sources of domestic lithium supply.
Federal Investment in Critical Minerals
The award is part of a larger $500 million allocation from the U.S. Department of Energy's Office of Critical Minerals and Energy Innovation (CMEI). This funding was distributed among seven selected projects designed to expand critical mineral and material processing, battery manufacturing, and recycling capacity within the United States. According to the Department of Energy, the initiative follows President Trump's Executive Order, Unleashing American Energy, which seeks to strengthen domestic supply chains and reduce reliance on foreign sources.
Project Development and Partnerships
The Great Salt Lake project is currently in an advanced stage of development. Lilac Solutions reported that the project has secured a binding offtake agreement for 100% of its planned production. Furthermore, the company has completed a pilot plant and FEL-3 engineering, with permitting expected to reach completion soon. Major project partners for the venture include Hatch and JordProxa.
Scaling Domestic Lithium Production
Phase 1 of the lithium production facility is projected to produce 5,000 tonnes of battery-grade lithium carbonate per year by 2028, a volume that would double the current total lithium production in the United States. The company has outlined a clear path for future growth through a Phase 2 expansion, which aims to reach 20,000 tonnes per year. This increased capacity would be sufficient to support approximately 30 gigawatt-hours of domestic battery manufacturing on an annual basis.
Sustainable Extraction Technology
Lilac Solutions utilizes Gen 5 ion exchange (IX) technology to extract lithium from brine pumped directly from the Great Salt Lake. The company describes the process as non-consumptive, meaning the lithium-depleted brine is returned to the lake in equal volume so that lake water levels are not lowered. This method is designed to provide a sustainable alternative to conventional extraction methods that rely on evaporation ponds.
Establishing a Domestic Supply Chain
The project is expected to establish a fully domestic supply chain. The technology itself was designed and engineered in California, while the IX media essential to the extraction process is manufactured at Lilac's facility in Fernley, Nevada. The brine resource itself is located in Utah. The company stated that the project will generate local tax revenues and royalties to support lake preservation and create jobs within Utah.
National Security and Energy Goals
U.S. Secretary of Energy Chris Wright stated that the federal government is working to reverse the nation's dependence on foreign actors for critical materials that underpin the economy, energy security, and national security. Assistant Secretary of Energy Audrey Robertson added that these projects underscore the Department of Energy's commitment to driving innovation and promoting American energy dominance. Lilac Solutions CEO Raef Sully noted that the selection reflects the commercial readiness of the company's technology and team, helping to bring a significant new domestic lithium source online in the near term.
