Canadian lithium developer E3 Lithium has finished well development and pump installation at its demonstration facility near Olds, Alberta, and is now awaiting regulatory approval to begin Phase 2 operations.
The company is following a structured three-phase demonstration program designed to prove the commercial viability of producing battery-grade lithium carbonate from its Alberta lithium brine resource using its proprietary Direct Lithium Extraction (DLE) technology.
Phase 2: Focused on Reservoir Understanding
The primary objectives of Phase 2 are twofold:
- Conduct a full reservoir production test to better characterize flow rates and performance in the Leduc Formation
- Gather detailed water and gas chemistry data from the brine
This information will directly feed into the final Reservoir Development Plan, which will determine the optimal wellfield and pipeline network design for the commercial project. The data will also be used to finalize the inlet design and gas separation systems for the future full-scale facility.
E3 Lithium has noted that the technical data collected during Phase 2 represents some of the final pieces required to complete the feasibility study for its flagship Clearwater Project, located between Red Deer and Calgary.
As is standard procedure, the company has submitted its Directive 51 application. Once the licence is granted, Phase 2 operations are expected to run for eight to twelve weeks before transitioning into Phase 3.
Work at the demonstration facility so far has been partially funded by a $5 million contribution from Emissions Reduction Alberta.
Preparing for Phase 3 in Parallel
While Phase 2 is underway, E3’s team is already preparing for the final and most important stage of the demonstration program. Phase 3 will focus on proving the DLE technology at scale by producing battery-grade lithium carbonate.
This phase includes:
- Continued operation of the 30-column DLE system (successfully commissioned in Phase 1) paired with purification and carbonation equipment
- Construction and operation of a full commercial-scale single DLE column
The single-column unit will be built over the coming summer with support from the Canadian government’s Global Partnerships Initiative, which has conditionally approved $36.5 million in funding.
Why Phase 3 Matters
Phase 3 represents the real-world validation of the entire process — from live brine to battery-grade lithium carbonate. The demonstration plant is expected to produce approximately 100 tonnes per year of lithium carbonate equivalent (in the form of lithium chloride), which E3 will use to advance offtake discussions with potential customers.
By operating DLE technology at a true 1:1 commercial scale with actual reservoir brine, E3 will generate critical performance data that financial institutions, strategic partners, offtakers, and governments require. This data is expected to play a key role in securing project financing for the first phase of the Clearwater Project, which is targeting commercial production of 12,000 tonnes per year of lithium carbonate.
