The government of Canada has invested $27 million to support the development of a lithium production plant being constructed by Calgary-based E3 Lithium Ltd. (TSX.V: ETL) (FSE: OW3) (OTCQX: EEMMF).
The Minister of Innovation, Science and Industry François-Philippe Champagne announced the news on Monday with George Chahal, a member of parliament for Calgary Skyview. The contribution came from the government’s Strategic Innovation Fund and its Net Zero Accelerator Initiative aimed at environmental sustainability.
The investment will support E3’s $87 million project involving the construction of what it describes as a demonstration facility, which will be the initial step prior to the establishment of a full-scale production plant that will produce up to 20,000 tonnes of battery-grade lithium.
Canada has everything it needs to be a global leader in the production of EV batteries.
That’s why we’re investing $27M into @e3lithium, a company that will produce battery-grade lithium in Canada and create high-quality jobs for Albertans.
— François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) November 28, 2022
The government says investing in E3’s project will facilitate the development of a long-term sustainable source of lithium which will be essential for producing electric vehicles and building an anchor in the continent’s supply chain. Through investing in national lithium production the government believes it is ensuring the country is prepared for increasing domestically produced battery demands and supporting Canada’s minerals sector.
Additionally, the project is anticipated to create 166 valuable jobs for Canadians’ residing in Alberta and will help advance the country’s Critical Minerals Strategy.
The demand for lithium is expected to increase by 500 per cent in the next 27 years due to the growing demand for domestically manufactured batteries and clean methods of transportation.
“Canada has everything it needs to build the EVs and batteries that consumers are demanding, and Alberta is key to building that ecosystem and accelerating the low-carbon economy. E3 Lithium’s groundbreaking technology will play an important role in providing large quantities of battery-grade lithium to the auto industry while also creating high-quality jobs for Canadians,” said François-Philippe Champagne, Minister of Innovation, Science and Industry.
“This project will help position Canada as a world leader in batteries and will strengthen the critical minerals sector in the Calgary region.”