Lilac Solutions is developing a commercial lithium facility near Utah’s Great Salt Lake, but it is not producing lithium there commercially today. The company’s latest schedule, announced in June 2026, targets first production in 2028, with Phase 1 designed for 5,000 tonnes of lithium carbonate per year. That target depends on completing project development, including a final investment decision and required approvals.
What Lilac is planning at the Great Salt Lake
California-based Lilac Solutions plans to extract lithium from brine drawn from the lake’s north arm using its Gen 5 ion-exchange process, a form of direct lithium extraction (DLE). Rather than relying on large evaporation ponds, the process is designed to separate lithium from the brine and return lithium-depleted brine.
Lilac says its process returns an equal volume of depleted brine and does not lower lake levels. It also claims that its system avoids evaporation ponds and uses less freshwater than competing DLE technologies. Those are company claims, not independently established comparisons in the available project information.
The company describes the supply chain as domestic: technology designed and engineered in California, ion-exchange media made at its Fernley, Nevada facility, and a brine resource in Utah. Lilac estimated the northern-arm resource at 1.4 million tonnes of lithium carbonate equivalent in its June 2026 project announcement. That is the company’s resource estimate, not a measure of lithium already produced.
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How the extraction process is expected to work
Utah’s Division of Water Quality described the proposed commercial facility in a June 1, 2026 draft public notice. The proposed sequence is intake and prefiltration, ion-exchange extraction, then post-processing of the lithium-rich eluate. The notice gives a planned facility flow rate of 20 million gallons of brine per day and says freshwater would be supplied in part by an on-site groundwater well.
At a high level, ion-exchange media selectively captures lithium from the brine. The captured lithium is then recovered into an eluate for further processing. The facility’s stated flow is a planned plant throughput, not a volume of lithium output; the notice does not make those figures interchangeable.
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What the pilot demonstrated—and what it did not
Lilac reported that its Great Salt Lake pilot operated for seven months, processed more than one million gallons of brine and reached a peak flow of 15 gallons per minute. The company said it averaged 87% lithium recovery from brine containing 69 milligrams per litre of lithium, compared with an 84% recovery figure in its stated FEL-3 design basis. It also reported 99.97% overall impurity rejection and said the system ran through winter and summer conditions without heating or cooling the brine.
These are company-published pilot results from Lilac’s October 7, 2025 announcement. Lilac said third-party sampling and laboratory analysis confirmed performance and permit compliance, but the reported pilot figures do not by themselves establish commercial-scale output, operating costs, or performance over years of continuous production.
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| Measure | Pilot or project figure | What it represents |
|---|---|---|
| Lithium recovery | 87% average, from brine reported at 69 mg/L lithium (Lilac, October 2025) | Company-reported pilot result; the stated FEL-3 design basis was 84%. |
| Impurity rejection | 99.97% overall (Lilac, October 2025) | Company-reported pilot result. |
| Pilot operation | More than 1 million gallons over seven months; peak 15 gallons per minute (Lilac, October 2025) | Pilot throughput and duration, not commercial plant capacity. |
| Phase 1 planned output | 5,000 tonnes per year; first production targeted for 2028 (Lilac, June 2026) | Planned commercial capacity and schedule, not current production. |
| Possible total capacity | 20,000 tonnes per year if Phase 2 proceeds (Lilac, June 2026) | Contingent expansion; Lilac estimates this could support about 30 gigawatt-hours of annual battery manufacturing capacity. |
Project timeline, partners and commercial commitments
In June 2026, Lilac said it had completed FEL-3 engineering and selected Hatch as its engineering, procurement and construction management partner. The company described a 20-acre site in Box Elder County and said it was advancing toward a final investment decision expected later in 2026. Its latest stated first-production target is 2028; an October 2025 company announcement had previously targeted 2027.
Lilac and Traxys North America announced a binding 10-year take-or-pay offtake agreement in January 2026. The agreement covers 50,000 tonnes of lithium carbonate, with pricing mechanisms linked to market indices; Lilac said it represents 100% of planned Phase 1 output. An offtake agreement is a commercial commitment to purchase qualifying production, not proof that production has begun or that the facility is complete.
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In August 2026, Lilac announced that the U.S. Department of Energy had selected it for a $100 million award through a wholly owned subsidiary. The announcement said the award remained subject to completion of final negotiations; it should not be treated as finalized or disbursed funding. Lilac named Hatch and JordProxa as project partners in that update.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Permitting and environmental oversight
Utah’s June 2026 draft public notice sets out proposed monitoring conditions associated with a discharge permit: weekly influent and effluent sampling with monthly reporting, plus quarterly biological monitoring. The notice also says the feasibility study did not cover all seasons and did not include chlorine addition. Those details matter because pilot performance under tested conditions does not settle every question about full-scale operations or all seasonal conditions.
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- Hassle-Free Upgrade: With an integrated design, this lithium battery with charger is easier to install on compact golf carts compared to bulky lead-acid battery. With 4000+ charge cycles, it delivers up to 10 years of dependable performance with daily use
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The notice expressly cautions that operator certification does not itself authorize discharge and does not replace other permits. It is therefore not evidence that every approval needed for the project is complete. The notice’s proposed 20-million-gallon-per-day flow rate also describes the planned facility, not a guarantee of final operating conditions.
What “lithium empire” means in practical terms
The phrase is a headline-scale description of Lilac’s ambition, not a description of an existing production business at the lake. The project’s significance will depend on whether the company can move from a successful pilot to a permitted, financed and operating commercial plant. The most consequential checkpoints are the final investment decision, completion of negotiations on the DOE award, required permits, and demonstrated commercial performance.
For readers following the economic and industrial story, the distinction is straightforward: Lilac has reported pilot results, secured a stated offtake commitment for planned Phase 1 output, and announced a conditional federal award selection. Phase 1 production remains planned rather than operating, and the larger 20,000-tonne annual figure depends on a later Phase 2.
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