Name of the Project
Clearwater lithium project.

Location
The Clearwater project is located in the Bashaw district, between Red Deer and Calgary, with the demonstration programme and proposed first-stage commercial development about 15 km east of Olds, Alberta, Canada.

Project Owner/s
Canadian lithium brine developer E3 Lithium.

Project Description
A prefeasibility study (PFS) has outlined the detailed process to produce battery-grade lithium hydroxide, and has reported the first lithium-in-brine proven mineral reserves in Canada.  

The Clearwater project is planned as a closed-loop brine operation using deep wells and pipelines to extract and reinject brine from the Leduc reservoir, a central processing facility and direct lithium extraction (DLE) technology.

The project has estimated proven and probable lithium brine mineral reserves of 1.29-million tonnes lithium hydroxide monohydrate (1.13-million tonnes lithium carbonate equivalent, or LCE). The mineral reserve is contained within the Bashaw district measured and indicated lithium mineral resource, totalling 18.4-million tonnes lithium hydroxide monohydrate (16.2-million tonnes LCE).

The 2024 PFS projected initial production of 32 250 t/y of lithium hydroxide monohydrate and average production of 25 850 t/y over a 50-year operating life. The mine life is based on only a portion of the total Bashaw district.

E3’s current staged commercialisation plan targets Stage 1 production of about 12 000 t/y of battery-grade lithium carbonate, with expansion potential to up to 36 000 t/y. The central processing facility application is designed to enable production of up to 32 000 t/y of lithium carbonate.

E3 has said process water is expected to be sourced from recycling and make-up water from waste brine streams, with no evaporation ponds required.

Potential Job Creation
At full capacity, the Clearwater Central Processing Facility could create hundreds of on- and off-site jobs, while construction could employ thousands of Alberta workers. The June 2026 federal funding agreement also supports E3’s current technical team and a commitment to hire up to 25 additional technical staff and operators.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at an 8% discount rate, of $5.18-billion and an internal rate of return (IRR) of 29.2%, with a payback of 4.25 years. The PFS also estimates an after-tax NPV, at an 8% discount rate, of $3.72-billion and an IRR of 24.6%.

Capital Expenditure
Initial capital expenditure is estimated at $2.47-billion, including water recycling and contingency.

Planned Start/End Date
E3 is targeting completion of front-end engineering design (FEED), the Clearwater Stage 1 feasibility study and a Class 3 cost estimate in the first quarter of 2027. A commercial operations date has not been stated.

Latest Developments
E3 Lithium has successfully commissioned Phase 2 of the demonstration facility and continues to operate a reservoir production test.

Lithium analysis of the brine produced from the production test has confirmed 75.8 mg/ℓ lithium, demonstrating the continued consistency of the brine chemistry across the Clearwater and greater Bashaw district, the company has said. The brine chemistry analyses have been completed by an independent third-party laboratory and support E3’s confidence in the technical foundation for its planned commercial development.

The current operations at the demonstration facility are facilitating a reservoir test to confirm flow parameters over an extended period.

Brine is being pumped from the production well and immediately disposed of in the injection well, all within the demonstration facility and, consequently, allowing for rapid assessment. The facility operations have achieved stable brine production and injection through the well-pair.

E3 has indicated that, during initial operations, the wellbore, through the electrical submersible pump, has maintained the targeted flow rate of 1 400 m³/d at steady state.

The data collected will support the reservoir development plan update, supporting the feasibility study.

Following the production test, the next planned operation will focus on brine:gas analysis, supporting the design of the front-end of the plant.

With Phase 2 operations under way, E3 has started a series of project-scale derisking activities.

The company has already moved more brine through the two wells than it has handled through all its previous testing combined, and expects to continue to operate the pump as needed over the coming 24 months. 

The data collected from these operations will support E3’s ongoing engineering work, including the completion of front-end engineering design and the feasibility study.

The company will continue to operate the demonstration facility to collect additional reservoir, brine chemistry and process performance data required to support commercial facility design and future development decisions.

Key Contracts, Suppliers and Consultants
Sproule Associates; Matrix Solutions; Sedgman Canada; and Stantec (PFS). Sedgman (FEED); Axens (nonbinding memorandum of understanding covering potential lithium carbonate offtake and lithium-selective sorbent supply); and ABB (collaboration referenced in the federal funding workstream).

Contact Details for Project Information
E3 Lithium, tel +1 587 324 2775 or email investor@e3lithium.ca.