Neptune Energy has commissioned a pilot plant in the Altmark region of Saxony-Anhalt, eastern Germany, to test direct lithium extraction (DLE) technologies for producing battery-grade lithium from thermal water. The move is part of a broader effort to reduce Germany’s dependence on imported critical raw materials for electric vehicle batteries.
The pilot facility, located in the Steinitz district of Salzwedel, will operate through the first quarter of 2026, following regulatory approval from the State Office for Geology and Mining. Neptune will evaluate several DLE technologies using thermal water extracted from existing natural gas wells in the region. U.S.-based Lilac Solutions is supplying a mobile container-based plant to carry out onsite processing. The extracted lithium chloride will be converted into lithium carbonate at a nearby laboratory.
Neptune previously tested lithium extraction at the Steinitz site in collaboration with French firm Geolith and U.S. engineering company KBR, achieving 99.9% purity in battery-grade lithium carbonate in late 2024. “Through the different pilot projects, we are gaining valuable insights for further project development and identifying the most efficient technical solution for sustainable lithium production,” said Andreas Scheck, Managing Director at Neptune Energy.
The company estimates that the Altmark region holds around 70 million tonnes of lithium carbonate deposits. It aims to eventually extract up to 25,000 tonnes annually—enough to supply battery material for roughly 500,000 electric vehicles. “The Altmark combines geological potential, established infrastructure, and technical expertise—ideal conditions to make Germany less dependent on expensive raw material imports,” said Axel Wenke, Director of New Energy at Neptune Energy.
Despite the project’s strategic significance, it has drawn public opposition. More than 22,000 people have signed a petition opposing lithium mining in the Altmark and the adjacent Lüneburg Heath, according to local broadcaster MDR. Environmental group Clean Environment Altmark has demanded that Neptune first address a toxic, mercury- and arsenic-contaminated pit near Kalbe—another of its sites—before proceeding with new projects. Neptune says it cannot comply due to the lack of available disposal routes.
Neptune Energy was acquired by Italy’s Eni in January 2024. Eni has diversified into electric mobility services, including car sharing and EV charging, but continues to face scrutiny over its global emissions and past corruption allegations. Neptune, which originated in the UK, counts the China Investment Corporation and U.S. private equity firms Carlyle Group and CVC Capital Partners among its former shareholders.
Germany, home to automakers such as Volkswagen, BMW, and Mercedes-Benz, is seeking to secure access to critical battery materials through domestic mining and recycling. In addition to the Altmark, lithium mining projects are under development in the Ore Mountains and the Upper Rhine Graben.