E3 Lithium Advances Clearwater Project and 2025 Demonstration Plant Plans

E3 Lithium, a leading Canadian lithium developer, has provided an update on its Clearwater Project and 2025 demonstration plant development plans, positioning itself to become a major supplier of Canadian lithium to the global battery market. The company aims to make the Clearwater Project 'hovel ready' in 2026, with permits potentially in place by mid-2026, as it drives toward first lithium production and the delivery of battery-quality lithium products.

In 2025, E3 Lithium will focus on five main initiatives to progress toward commerciality: advancing Phase 1 engineering for the commercial plant, constructing a fully integrated demonstration facility, submitting environmental applications to the Alberta Energy Regulator (AER), developing strategic partner and future offtake relationships, and building strong stakeholder engagement and support. These strategic moves will help E3 Lithium navigate the regulatory environment and bring the Clearwater Project to fruition.



The demonstration facility, expected to be commissioned in the early part of Q3 2025, will showcase Canada's first scaled-up Direct Lithium Extraction (DLE) system to convert brine to battery-quality lithium product. This facility will validate the production process and provide consistent product to potential customers over an extended period, further strengthening E3 Lithium's path to commercial operations.

E3 Lithium's strategic planning for the Clearwater Project has been influenced by the shift in demand towards lithium carbonate over lithium hydroxide, driven by the increasing use of lithium-iron-phosphate (LFP) batteries and mid-nickel chemistries. In response to this market trend, the company has made two fundamental changes to the design of the Clearwater Project:

1. Initial focus on battery-quality lithium carbonate production: E3 Lithium has decided to initially focus on producing battery-quality lithium carbonate, which aligns with the current market demand for this product. This decision is expected to provide several potential benefits, including:
* In line with the market shift towards LFP and mid-nickel cathodes
* Current and near-term forecasted price for lithium carbonate near parity with lithium hydroxide
* Decreases project risk and capital by simplifying facility designs
* Decreases operating costs by removing a number of reagents required
* Simplifies product handling and logistics for the first phase
* Retains optionality to add a hydroxide conversion facility at a later date
2. Phased approach to project development: E3 Lithium is planning to build the Clearwater Project in three phases of 12,000 tonnes per year to assist in the reduction of initial capital requirements, project risk, and to accelerate the timeline to initial production. This phased approach allows the company to:
* Reduce the initial capital required for the project
* Decrease project risk by implementing a more manageable scale
* Increase speed to market by reducing engineering and construction timeframes

By focusing on lithium carbonate production and implementing a phased approach, E3 Lithium can potentially reduce capital expenditure, decrease project risk, and accelerate the path to commercial production, ultimately strengthening its competitive position in the global battery market.

As E3 Lithium continues to advance its Clearwater Project and 2025 demonstration plant development plans, the company is well-positioned to capitalize on the growing demand for lithium carbonate and deliver battery-quality lithium products to the global market. With a strong jurisdictional advantage, available and proximal infrastructure, and a world-leading permitting system for critical minerals, Alberta is poised to become a leader in lithium production. E3 Lithium's strategic planning and proactive approach to navigating the regulatory environment will be crucial in bringing the Clearwater Project to fruition and solidifying its position as a major supplier of Canadian lithium.