The U.S. Trade and Development Agency is funding a pilot project to extract lithium from geothermal brine in Indonesia, deploying U.S. technology at a state-owned geothermal site. The initiative aims to diversify global critical mineral supply, support Indonesia’s battery ambitions, and create potential commercial opportunities for U.S. lithium buyers.
A new U.S.-supported pilot project will test lithium extraction from geothermal resources in Indonesia, marking the country’s first attempt to recover the battery metal from geothermal brine. According to official disclosures, the U.S. Trade and Development Agency (USTDA) has funded the initiative to deploy direct lithium recovery technology developed by California-based Lilac Solutions at facilities operated by PT Geo Dipa Energi, a state-owned geothermal developer.
The demonstration will take place at the Dieng geothermal field in Central Java, where lithium dissolved in geothermal fluids will be processed into lithium carbonate using ion exchange technology. USTDA said the program will also connect the Indonesian developer with potential U.S. buyers of the processed material, supporting commercial pathways if the technology proves scalable. The initiative highlights growing efforts by governments and industry to diversify sources of critical minerals used in electric vehicles, energy storage systems, and advanced electronics. Lithium demand has surged alongside global electrification efforts, prompting interest in alternative extraction methods that reduce dependence on traditional mining operations.
PT Geo Dipa Energi operates geothermal assets in Indonesia, one of the world’s largest geothermal energy markets, while Lilac Solutions develops direct lithium extraction technologies designed to recover lithium from brines more efficiently than conventional evaporation methods. If successful, the pilot could unlock additional revenue streams from geothermal operations while strengthening regional supply chains for battery materials across the Indo-Pacific. For investors and technology providers, the project signals increasing integration between renewable energy infrastructure and critical minerals production, a trend likely to shape future battery supply strategies.
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