By Ernest Scheyder

HOUSTON (Reuters) - SLB on Tuesday said it will commercially launch its version of a direct lithium extraction (DLE) system after years of tests in a Nevada desert and could be producing the electric vehicle battery metal for clients by 2027.

The Houston-based oilfield services giant, formerly known as Schlumberger, is the latest to make a major push into the fast-growing DLE sector, which has sucked in Exxon Mobil, Rio Tinto, International Battery Metals and others aiming to revolutionize how the ultralight metal is processed for the energy transition.

Lithium has historically been produced using large, water-intensive evaporation ponds or open-pit mines. While DLE technologies vary, they are comparable to common household water softeners and aim to extract about 90% or more of the lithium from brines, compared to about 50% using ponds.

SLB said it has developed a system that combines DLE technology from privately-held EnergySource Minerals and water treatment equipment from others. The technology was tested at a Nevada brine deposit controlled by Pure Energy Minerals. SLB now plans to design a commercial version of the plant with a capacity of 10,000 metric tons per year and market it to interested customers.