E3 Lithium announced that it has executed a contribution agreement with Natural Resources Canada’s Global Partnerships Initiative, confirming up to $36.5 million in non-repayable funding to accelerate development of its Clearwater Project in Alberta. The funding will support the final phase of the company’s Demonstration Facility and engineering activities required to complete the project’s feasibility study ahead of a final investment decision.
The funding, which covers 75% of an approximately $48 million program, is retroactive to April 1, 2026, and will support both project activities and the expansion of E3’s technical workforce through the addition of up to 25 employees.
The company has already begun ordering equipment for Phase 3 of its Demonstration Facility, which includes operation of a commercial-scale direct lithium extraction column. The phase is designed to validate the scalability and reliability of E3’s technology while increasing production volumes of battery-grade lithium carbonate. E3 aims to demonstrate lithium recovery rates above 85%, produce lithium chloride equivalent to as much as 100 tonnes of lithium carbonate annually, and continue product qualification efforts with potential customers and offtake partners.
In parallel, E3 will complete front-end engineering design and the feasibility study for Stage 1 of the Clearwater Project, which targets annual production of 12,000 tonnes of battery-grade lithium carbonate. The company expects to complete the feasibility study and Class III cost estimate in the first quarter of 2027.
E3 has retained Sedgman, a CIMIC Group company, to lead front-end engineering design for the project. The engineering work and commercial-scale demonstration are intended to reduce technical risk and position the project for financing and a final investment decision.
The Clearwater Project contains significant lithium resources in Alberta and represents a key component of Canada’s efforts to establish a domestic critical minerals supply chain and strengthen its role in the global lithium market.
KEY QUOTES:
“Canada is building strong domestic critical minerals value chains, and that means investing at the stages that matter most in getting projects over the line. Through the Global Partnerships Initiative, we are supporting the engineering, demonstration and feasibility work needed for E3 Lithium’s Clearwater Project to reach final investment decision. This is how we move faster, reduce risk and ensure sustainable, sovereign Canadian lithium can power our economy at home and supply our allies abroad.”
Tim Hodgson, Minister of Energy and Natural Resources, Government of Canada
“E3 began ramping up the aspects of this project beginning in April this year, upon conditional approval of the funding. With the execution of the contribution agreement, E3 is now fully executing towards some of the biggest technical milestones we have in front of us, aiming to significantly derisk our Clearwater Project ahead of the final investment decision. We appreciate the Government of Canada’s support in advancing a domestic lithium supply chain and strengthening Canada’s position in the global critical minerals market.”
Chris Doornbos, CEO and Chair, E3 Lithium Ltd.
