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Calgary-based E3 Lithium has secured $27 million in federal funding to help the company continue to progress toward extracting lithium from the province’s old oilfields.
The funding announced Monday is part of Innovation, Science and Economic Development’s Strategic Innovation Fund, which has put $6.8 billion toward 107 projects across Canada.
“It’s absolutely huge on multiple levels,” said Chris Doornbos, E3 Lithium CEO and founder. “Seeing this level of investment in Alberta with our resources, I think it’s a big vote of confidence from the federal government.”
The goal for E3 is to separate lithium from the aquifer of the Leduc reservoir for use in electric vehicle and battery technology.
E3 is attempting to use an ionization process, which will separate lithium from the brine left over from oil extraction by drilling into the aquifer below the reserve. Once the lithium has been extracted, the remaining water will be returned to the aquifer.
Doornbos said in June that the proprietary process will have only three per cent of the carbon footprint of other processes, while yielding a much higher-grade product. Their technology differs from other efforts as it does not require evaporation.
Once up and running, he said the Clearwater project will produce 20,000 tonnes of sustainable lithium a year for the next 20 to 30 years.
E3 drilled its first pilot well in June, east of Olds, has since drilled a second hole and purchased a third. The holes are part of the pre-feasibility study of the 12- to 18-month pilot project.
The early returns have been encouraging, Doornbos said.
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“This is the first set of data that we can actually use, which means that we can book a reserve out there,” he said. “That’s fundamental for us because that’s where we want to produce from, and it confirmed that the lithium grade is consistent.”
The funding almost doubles the $35 million previously raised, which includes $1.8 million from Invest Alberta and $6.35 million from their partnership with Imperial Oil as well as other rounds of public investment.
This federal funding helps cover the cost of the already drilled holes and will help develop a pilot plant in the next year or so, as well as potentially drilling more wells.
Once the pre-feasibility study is complete and a report is written, the company will likely pursue another round of funding and investment to build a production facility. That is likely three to four years down the road.
The project is still in the non-revenue stage, but Doornbos said this announcement will help them get much closer to that phase.
The federal government has identified lithium as a focus of its $3.8-billion, eight-year critical minerals strategy. The goal is to create a domestic supply chain for electric vehicles, boosting the economy while tackling greenhouse gas emissions at the same time.
Innovation, Science and Industry Minister Francois-Philippe Champagne said E3 Lithium’s technology will play an important role in providing large quantities of battery grade lithium to the auto industry.
“This is really building from coast-to-coast this battery ecosystem,” he said in a video statement from South Korea. “We want everyone in Canada to be benefiting from this new industry.”
In October, Ottawa announced $222 million for Rio Tinto Fer et Titane in Quebec to increase its production of critical minerals.
There have also been several other investments in mineral extraction and battery production facilities, mostly in Eastern Canada.
Twitter: @JoshAldrich03
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