en.Wedoany.com Reported - Canadian lithium developer E3 Lithium has met all conditions to receive C$36 million in funding from the Canadian federal government to advance the Phase 3 demonstration facility and overall project feasibility study for the Clearwater Project in Alberta.
Following the signing of a non-repayable contribution agreement through the Global Partnerships Initiative (GPI) of Natural Resources Canada, E3 will secure sufficient funding to cover 75% of the C$48 million capital requirements needed for the ongoing work on the Clearwater Project. The funding is retroactive to April 1, allowing the company to claim eligible expenses starting from the second quarter. This support through GPI will enable E3 to accelerate the development of the Clearwater Project at critical milestones as the company seeks to complete key technical deliverables for the first phase of commercial operations.
Canada's Minister of Energy and Natural Resources, Tim Hodgson, stated that Canada is building a strong domestic critical minerals value chain, which means investing at the most critical stages to drive projects to completion. Through GPI, the federal government supports the engineering, demonstration, and feasibility work required for the E3 Lithium Clearwater Project to reach a final investment decision, thereby advancing faster, reducing risks, and ensuring sustainable, sovereign Canadian lithium can support the domestic economy and supply overseas allies.
E3 began accelerating all aspects of the project in April of this year after conditional approval of the funding. E3 CEO and Chairman Chris Doornbos explained that with the contribution agreement signed, E3 is now fully advancing toward its current largest technical milestone, aiming to significantly de-risk the Clearwater Project before the final investment decision. The company thanked the Canadian government for its support in advancing the domestic lithium supply chain and strengthening Canada's position in the global critical minerals market.
The federal funding through GPI will also cover 75% of the company's current technical team costs, as well as the costs of committing to hire up to 25 additional new technical and operational personnel.
Following the contribution agreement, E3 has begun ordering equipment needed to complete Phase 3 of the demonstration facility. Phase 3 includes operating the previously deployed 30-column direct lithium extraction (DLE) and purification/carbonation skids, as well as constructing and operating a commercial-scale single-column DLE. The company expects to achieve increased production of battery-grade lithium carbonate, which will enable E3 to continue advancing product qualification with offtake partners and assess value opportunities in the commercial battery supply chain. Successful completion of Phase 3 of the demonstration facility is a significant de-risking milestone for the company and will be a key component for potential strategic and offtake partners, project financiers, and any possible additional government support in evaluating the Clearwater Project. E3's goals for Phase 3 of the demonstration facility include: demonstrating over 85% lithium recovery through a single commercial column and producing lithium chloride at a rate equivalent to up to 100 tonnes of lithium carbonate per year.
GPI funding will also support E3 in completing the feasibility study for the Clearwater Project, which targets an initial phase production of 12,000 tonnes of battery-grade lithium carbonate per year. The study is expected to be released in the first quarter of 2027. The engineering scope will include final designs for reservoir development, gas processing systems, lithium extraction and purification, and lithium carbonation. Phase 3 of the demonstration facility is designed to support process validation and prepare for project financing, while the feasibility study and related engineering represent the company's last major technical milestones before detailed engineering and advancing toward a final investment decision.
The company has engaged globally renowned engineering firm Sedgman to lead the front-end engineering design for the Clearwater Project. Sedgman's expertise in process plant design and project execution is expected to support the Clearwater Project in advancing to final engineering, cost estimation, and a final investment decision. Sedgman is currently involved in the engineering and delivery of other advanced lithium processing facilities utilizing DLE technology, including projects moving toward commercial-scale implementation.
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