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 announced on June 10, 2026, that it had executed a contribution agreement confirming up to C$36.507-million of nonrepayable funding through Natural Resources Canada’s Global Partnerships Initiative. The funding will support 75% of an about C$48-million programme to complete the final Phase 3 of the demonstration facility and the Clearwater project feasibility study, with eligible costs retroactive to April 1, 2026.

E3 has started ordering equipment required for Phase 3. The phase includes operating the previously commissioned 30-column DLE and purification/carbonation skids, as well as building and operating a commercial-size single DLE column. 

Phase 3 is intended to validate DLE performance, reliability and scalability at full commercial scale, support product qualification with offtake partners and derisk Clearwater ahead of a final investment decision. E3’s Phase 3 goals include construction of the single commercial column through the second half of 2026, demonstrating lithium recovery of more than 85% and producing lithium chloride at an equivalent rate of up to 100 t/y of lithium carbonate.

The same funding will also support the Clearwater feasibility study, which targets Stage 1 production of 12 000 t/y of battery-grade lithium carbonate. E3 aims to complete FEED, the feasibility study and a Class 3 cost estimate in the first quarter of 2027. 

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.