Canada's Clearwater Lithium Project Proposes to Supply Up to 25,000 Tonnes of Lithium Carbonate Over 5 Years
en.Wedoany.com Reported - On September 14, E3 Lithium announced that it has signed a non-binding memorandum of understanding with Indian cathode material manufacturer Epsilon CAM, under which E3 Lithium's Clearwater lithium project in Alberta, Canada, would supply battery-grade lithium carbonate to Epsilon CAM. The memorandum took effect on September 1, with a proposed supply period of 5 years and an annual supply volume of up to 5,000 tonnes, corresponding to a maximum of 25,000 tonnes over 5 years; the final supply volume and commercial terms will be determined as the two parties proceed toward a formal agreement.
Under the current framework between the two parties, the proposed supply volume of up to 5,000 tonnes per year is equivalent to approximately 40% of the planned annual output of Phase 1 of the Clearwater project. E3 Lithium has adjusted the Clearwater commercial development plan to phased construction, with Phase 1 targeting an annual output of 12,000 tonnes of battery-grade lithium carbonate, and the project having subsequent plans to expand to an annual output of 36,000 tonnes. The project adopts a development route based on underground lithium-bearing brine resources and incorporates direct lithium extraction, purification, and carbonation processes into the engineering design of the commercial facility.
The Clearwater project is currently still in the pre-commercial engineering, permitting, and technical validation stage. E3 Lithium is advancing front-end engineering design and feasibility studies, and plans to submit the remaining permit applications required for project construction and operation by the end of 2026. The company previously determined that the Phase 1 commercial facility of the project is planned to enter the commissioning and commercial operation stage between 2028 and 2029. The final investment decision remains at a subsequent development milestone.
In terms of process validation, E3 Lithium has completed Phase 2 commissioning of the demonstration facility and is advancing Phase 3 of the single commercial column unit. Phase 3 is planned to validate a lithium recovery rate of more than 85% and produce lithium chloride at a rate equivalent to a maximum annual output of 100 tonnes of lithium carbonate, while providing lithium chloride or lithium carbonate products to potential customers for larger-scale product pre-qualification. These test results will continue to be used for the Clearwater project feasibility study, project financing, and subsequent offtake agreement negotiations.
Epsilon CAM is building a 30,000-tonne-per-year cathode active material facility in India, with Phase 1 planned for completion in early 2028, and its third-generation lithium iron phosphate cathode material is undergoing validation with global customers. The company has an ISO 9001-certified cathode technology center in Moosburg, Germany, and operates a 250-tonne-per-year commercial demonstration facility. The Clearwater lithium carbonate under this memorandum is intended to serve as a potential feedstock source for its Indian cathode material production system.
The two parties have not yet signed a binding formal offtake contract. E3 Lithium stated that the final supply volume, price, and other commercial terms will be determined in a subsequent formal agreement, and the relevant agreement is expected to align with the progress of the Clearwater project's permitting, demonstration validation, feasibility study, and final investment decision.
