E3 Lithium (TSXV: ETMC) has unveiled plans to build a fully integrated demonstration facility in Alberta aimed at producing battery-grade lithium carbonate from brines found in the Leduc reservoir.
The company’s Clearwater project, situated between Red Deer and Calgary in Canada’s oil-producing region, is leveraging direct lithium extraction (DLE) technology to mine naturally occurring lithium from oilfield brines.
Historically, oil drillers would pump this brine back into the ground as waste. However, with the surge in lithium demand driven by electric vehicle (EV) manufacturers, this brine has become a highly sought-after resource.
Unlike traditional methods that involve evaporating brine in large ponds, DLE technology processes the brine directly in a plant. This approach uses a series of chemical reactions to extract lithium quickly, returning the remaining brine underground. This method significantly accelerates lithium carbonate production from hours, compared to the 18 months required with evaporation ponds, and eliminates the need for transporting concentrates to different facilities.
E3 Lithium’s CEO, Chris Doornbos, emphasized the significance of the demonstration project, stating, “This project is a crucial milestone for advancing the Clearwater project, allowing us to provide samples to potential strategic partners and furthering the commercial development of lithium assets in Alberta.”
According to a preliminary economic assessment from 2020, the Clearwater project is projected to produce 20,000 tonnes of lithium hydroxide annually over a 20-year period.
