Alberta is well-known for its innovation in the energy sector.
After all, in the past, the idea of making oil out of ‘tar sands’ was poo-pooed, but doubters were proven wrong.
Now, a Calgary-based company is leading the charge for lithium extraction in Alberta.
In case you’re not aware, lithium is a crucial component needed in electric vehicle (EV) batteries. On average, an EV battery pack in a car uses about 8 kg of lithium!
So, we’ll need a lot of lithium if we transition to all-electric cars by 2035, as mandated by the federal government.
Where Do We Find Lithium?
Lithium can be found underground in places like salty water, rocks, clay, seawater, and hot water from the Earth’s depths.
To get lithium, chemicals are used to extract it from these underground sources and turn it into something saleable, like lithium carbonate or lithium hydroxide, which is stable and easy to use.
Often, digging or drilling is necessary to reach the lithium deposits underground.
E3 Lithium has access to millions of tonnes of lithium resources in aquifers deep under Central Alberta. However, the question they had was, could they efficiently extract the lithium from the deep aquifers 2.5 kilometres underground?
So, E3 Lithium opened a pilot plant east of Olds this past September to test their extraction methods.
And the news is good; not only did they prove the first at-scale demonstration of lithium extraction technology, but they also showed they could achieve 99.78% pure battery-grade lithium hydroxide.
Impressive.
The First Lithium Plant in Alberta?
Now, E3 Lithium is taking its promising test results and using it to design a commercial Lithium plant.
A public report due in early summer 2024 will outline their findings and the full commercial potential of the project.
The plans will include detailed design work for a commercial plant, regulatory work, and stakeholder engagement for construction around Olds.
The plant will create 1,000 construction jobs and up to 150 permanent local positions.
The plant, scheduled for 2026, will resemble existing gas processing plants in the region and produce 20,000 to 30,000 tonnes of lithium annually.
The initial project cost of $600 million is likely underestimated due to inflation.
Demand for lithium is rising. Last year, only about 960,000 tonnes of it were produced globally. By the year 2030, we will need 2-3 million tonnes each year. This could make the price of lithium go up.
Investors are taking notice, as seen with General Motors’ $650 million investment in Lithium Americas for lithium access from Nevada mines.
Will Alberta take the lead on Lithium?
Anything is possible.
