HOUSTON, Sept 10 (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 ( SLB ), is the latest to make a major push into the

fast-growing DLE sector, which has sucked in Exxon Mobil ( XOM )

, Rio Tinto, International Battery Metals ( IBATF )

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 ( PEMIF ).

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.

"We can build it and put one in South America or put one

anywhere in North America," Gavin Rennick, president of SLB's

New Energy division.

The company essentially aims to replicate its oilfield

business model by extracting lithium for customers who own

geological deposits of the critical mineral.

SLB believes its facility could produce lithium for less

than $5,000 per metric ton, a figure that includes operating

costs and construction costs amortized over 20 years.

Lithium prices are currently trading near $10,000 per metric

ton, according to Benchmark Mineral Intelligence, down more than

75% in the past year, meaning that SLB sees its process as

having a cost advantage amid the low-price environment.

Panasonic ( PCRFF ) is testing the project's lithium for

consistency and quality, Rennick said.

SLB has only tested its DLE system in Nevada, and many of

its peers have found that altitude, weather and other factors

can affect DLE operations. Still, SLB said it has tested brines

from all over the world at its pilot facility.

"We feel extremely confident now about us being able to

deliver those kind of economic numbers at production scale

across a broad range of assets," said Rennick.