Calgary’s E3 Lithium Ltd (TSX-V: ETL) (OTCQX: EEMMF) was awarded C$5 million by the Government of Alberta to advance its lithium brine conversion facility near Olds this week.
On Thursday, the battery metal company gave provincial officials a tour of the new plant.
This isn’t the first time the prairie province’s government has provided E3 with funding. In 2022, the chemical producer got a C$27 million sum from Alberta authorities for its work. Also, a C$1.8 million dollar grant in 2021.
E3 Lithium is now developing a demonstration plant to showcase its ability to convert locally sourced lithium brine into battery-grade lithium carbonate on a large scale. Construction of the commercial scale “Clearwater” plant, which will cost around C$2.4 billion and produce about 32,000 tonnes per annum, will start in 2026.
There has been a rapidly increasing demand for this chemical and other lithium constituents. E3 started producing battery-grade lithium hydroxide monohydrate at another Alberta pilot plant last fall to capitalize on this demand.
“We are tapping into our province’s plentiful brine reserves, well-documented drill sites and talented oil and gas workforce to help E3 Lithium get its technology closer to commercialization,” Rebecca Schulz, Alberta environment minister and attendee of Thursday’s tour, said in a news release.
Yesterday, MLA @NathanCooperAB and I joined Justin Reimer with Emissions Reduction Alberta, E3 Lithium’s President and CEO Christopher Doornbos, and councillors for Mountain View County to announce ERA’s $5 million investment in E3 through the industry-funded TIER program, to… pic.twitter.com/Y5On9iGRmt
— Rebecca Schulz (@rebeccakschulz) August 16, 2024
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E3 utilizes oil & gas wastewater
The company is known for its resourceful use of brine that gets left over from oil production. Leduc and Nisku’s reservoirs are some of the best brine resources in the province. Here, the liquid gets pulled from about 2,500 metres below the surface.
“E3 Lithium exemplifies Alberta’s entrepreneurial spirit,” Justin Riemer, chief executive of Emissions Reduction Alberta, said.
“They saw an opportunity and developed an innovative strategy to capitalize on it, transforming industrial waste into a valuable energy source that can power your cell phone or your electric vehicle.”
Lithium brine is primarily sourced from Chile and Argentina, but Alberta is now making its footprint. Miners developing South America’s lithium resources in the salt flats, like Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF), are setting themselves up for a promising future like E3.
Alberta isn’t the only Canadian prairie province making strides in the lithium industry. Last week, Arizona Lithium Limited (ASX: AZL) (OTC: AZLAF) successfully produced Saskatchewan’s first kilogram of battery-grade lithium carbonate.
Lithium South is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
