United States Supports Critical Mineral Processing Project in Indonesia, Here's How It Works
The United States Trade and Development Agency (USTDA) is funding a pilot project demonstrating critical mineral processing technology in Indonesia, with a focus on lithium extraction from geothermal energy sources.
The project forms part of efforts to diversify the United States’ critical mineral supply chain whilst promoting renewable energy utilisation in Indonesia.
Under the project, California-based technology company Lilac Solutions, Inc. (Lilac), will demonstrate lithium processing technology at a facility operated by state-owned enterprise PT Geo Dipa Energi (GDE). The facility in Dieng, Central Java, will be the first in Indonesia to extract lithium from geothermal hot water.
Thomas R. Hardy, Deputy Director of USTDA, stated that access to critical minerals from reliable sources is essential for his country’s security and prosperity.
“American security and prosperity depend on access to critical minerals from trusted sources,” he said. “This project highlights the value of American solutions in building resilient supply chains and promoting responsible resource development with our partners in Indonesia.”
Lilac will employ ion exchange technology to process and refine lithium into high-quality lithium carbonate. Additionally, USTDA support includes connecting GDE with potential lithium carbonate buyers from the United States.
GDE Chief Executive Yudistian Yunis described the project as a strategic step in strengthening Indonesia’s self-sufficiency in meeting domestic lithium requirements.
“USTDA support marks an important step in strengthening Indonesia’s self-sufficiency in meeting lithium demand whilst deepening strategic collaboration between Indonesia and the United States,” he said.
He added that the initiative has potential to drive development of the national battery industry whilst creating added value from geothermal resources that have long been in use.
“Lithium naturally occurs in geothermal hot water that is already part of existing geothermal operations, so we can create economic benefits for local communities whilst protecting the environment,” he stated.
According to Yudistian, USTDA support also acts as a catalyst for accelerating access to technology and expertise from the United States, whilst opening opportunities for further investment through proof of commercially viable business models.
Meanwhile, Lilac CEO Raef Sully believes the project can unlock Indonesia’s significant untapped lithium potential.
“Indonesia’s geothermal fields contain substantial lithium potential that remains unexploited, and this project will demonstrate that American ion exchange technology can optimise it responsibly and at scale,” he said.
Through this pilot project, USTDA aims to drive broader geothermal sector development whilst strengthening critical mineral supply chain resilience in the Indo-Pacific region.