E3 Lithium Provides Update on the Clearwater Project and 2025 Demonstration Plant Development Plans
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E3 Lithium Provides Update on the Clearwater Project and 2025
Demonstration Plant Development Plans
CALGARY, ALBERTA, February 25, 2025 – E3 LITHIUM LTD. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF),
“E3”, “E3 Lithium” or the “Company,” a leader in Canadian lithium, is pleased to share its corporate guidance
and priorities for 2025.
E3 Lithium aims to be one of the few North American projects to produce battery quality lithium products
before the end of the decade. With a strong jurisdictional advantage, available and proximal infrastructure,
and a world leading permitting system for critical minerals, Alberta is positioned to become a leader in
lithium production. The Company achieved several significant milestones in 2024 including defining the
Clearwater Project through Pre-Feasibility, validating direct lithium extraction technology, booking Canada’s
first lithium-in-brine proven reserves and continuing the Company’s track record of success. In 2025, E3 is
building on that success to advance the project towards achieving first lithium production and delivering
battery quality lithium to the global battery industry.
In 2025, the Company will focus on five main initiatives as it progresses towards commerciality:
• Advance Phase 1 development of the commercial plant, including engineering for the feasibility
study.
• Construct and operate a fully integrated demonstration facility, showcasing Canada’s first scaled-
up Direct Lithium Extraction (DLE) system to convert brine to battery quality lithium product.
• Submit the required environmental applications in compliance with Alberta Energy Regulator’s
environmental standards and begin the process to license the Clearwater Project Central
Processing Facility (CPF) and wells with the Alberta Energy Regulator (AER).
• Meaningfully advance strategic partner and future offtake relationships.
• Continue to build strong stakeholder engagement and support
“We are driving to make the Clearwater Project 'shovel ready' in 2026," said Chris Doornbos, CEO of E3
Lithium. "The demonstration facility is expected to be commissioned in the early part of Q3 2025 and will
prove the viability of DLE technology to produce battery-grade lithium at scale. As electrification becomes
inevitable and energy security critical, our vast resource strategically positions E3 Lithium to become a
major supplier of Canadian lithium to the global battery market.”
Methodical and Accelerated Path to Lithium Production
During 2024, the lithium battery industry saw carbonate-based battery chemistries increase market share.
The use case lithium-iron-phosphate (LFP) batteries has increased significantly due to the energy density
increases and reduction in costs to about $50 per kWh1, which is now below the EV/ICE price parity point.
1 Reuters: Battery cell prices fall to record low in September, Oct 30, 2024
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Driven by a move to LFP and mid nickel chemistries, there is currently greater demand for lithium carbonate
over lithium hydroxide, accounting for over 60% of the overall chemical demand2.
E3 Lithium is set to make significant progress in 2025, focusing on optimizing the design, construction
planning and permitting of its first commercial facility. Following the Clearwater Project Pre-Feasibility
Study (PFS), E3 has been evaluating a phased approach for the first project with the goal of reducing the
initial capital required and increasing speed to market by reducing the engineering and construction
timeframes. From that analysis, E3 is making two fundamental changes to the design of the Clearwater
Project:
1. The initial plant design will focus on the production of battery quality lithium carbonate, which is
expected to provide the following potential benefits:
• In line with the market shift towards Lithium Iron Phosphate (LFP) and mid-nickel cathodes
• Current and near-term forecasted price for lithium carbonate is near parity with lithium hydroxide
• Decreases project risk and capital by simplifying the 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. The Clearwater Project is planned to be built in three phases of 12,000 tonnes per year to assist in the
reduction of the initial capital requirements, project risk and help accelerate the timeline to initial
production:
• Phase 1 will consist of four DLE trains with a combined production capacity of approximately
12,000 tonnes per year of battery quality lithium carbonate. This will be the focus of the initial
engineering.
• Expansion of the Clearwater Project to the full capacity target of 36,000 tonnes per year of lithium
carbonate will be developed in future phases.
Permitting Progress
Alberta stands as a premier jurisdiction for lithium brine extraction, leveraging nearly 80 years of resource
development expertise and vast lithium-in-brine resources from established assets. The province's robust
advantages include access to a skilled workforce that will need little to no reskilling to developing lithium
and direct proximity to North American markets through extensive infrastructure. What sets Alberta apart is
its unique synergy between lithium and oil & gas operations, providing operators with deep subsurface
knowledge and existing infrastructure.
E3 is in the process of building strong relationships with various regulatory agencies and developing the
necessary engineering information to submit the facility licenses to operate at the CPF, specifically the AER
Directive 56 facility license and Environmental Protection and Enhancement Act (EPEA) applications in
2 Benchmark Mineral Intelligence Q4 2024 Lithium Forecast Report
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compliance with provincial environmental regulations. The Company aims to have these permits submitted
by early Q3 of this year. While approval timeframes are hard to predict, historically the review process takes
less than 12 months to complete, potentially resulting in a fully permitted CPF in mid-2026.
The associated reservoir production scheme and well licence applications will be submitted to the AER over
this time with the goal of having sufficient permits in place to be ready for construction in the second half
of 2026. In addition, the Company is actively working to consolidate the freehold minerals rights across the
Bashaw District.
The regulatory framework, enhanced by Bill 82 and overseen by the AER, specifically addresses lithium and
critical minerals development. The operational model mirrors oil and gas production, utilizing familiar
directives for wells, pipelines, facilities, and environmental protection. This alignment, combined with
Alberta's skilled energy workforce and substantial drilling capacity of up to 400 active rigs, creates an
unparalleled environment for lithium production development.
Enhance Energy Inc. has submitted an application to the AER for approval to inject CO2 into the Leduc
Formation in the Woodbend Group in the northern section of the Bashaw District. E3, and as many as 35
freehold mineral rights holders, have filed their opposition to the application. Brine hosted minerals can
create significant value for Alberta’s taxpayers and the conservation of Alberta’s resources are of
paramount importance. The path forward should be as easy as co-production of lithium with subsequent
injection of CO2 or Enhance could dispose of CO2 in one of the many aquifers that do not hold mineral value
as the Leduc does, enabling a simple and amicable solution. E3 has and will continue to offer support to
Enhance for such a solution.
2025 Fully Integrated Demonstration Facility
The Demonstration Facility (“Demo Facility”) will be built to demonstrate the operations of continuous brine
production to battery quality lithium carbonate. The Demo Facility will collect continuous data and
demonstrate that the process can operate at commercial scale. The battery quality lithium carbonate can
then be provided to potential customers for pre-qualification.
The Demo Facility will utilize brine from a full-size commercial production and injection well pair and will
consist of two DLE systems to confirm various components of the process. Each of these DLE systems will
tie into the concentration and purification processes which lead to the carbonation equipment currently
operating in the E3 laboratory which will be relocated to the Demo Facility site.
The two DLE systems include:
1. A 30-column process optimization skid with a 12 m3/day brine flowrate, which will operate a valve array
and computer control system that mimics the commercial design from a process operations
perspective.
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2. A full-size single commercial column with a maximum 800 m3/day brine flowrate, which will operate in
the same manner and volume as the planned commercial design to confirm recoveries and operating
details. This aims to provide commercial scale data that will be applied directly to the full-scale design.
Lithium chloride from each DLE system will be further refined through filtration and polishing equipment to
produce highly concentrated and purified lithium chloride. The lithium chloride will then be converted to
battery quality lithium carbonate using the equipment currently operating at the E3 laboratory which has
achieved a battery quality purity of 99.71% based on internal analysis as outlined in the January 15, 2025
announcement.
The surface facility will be paired with a full-scale operation of a production and injection well pair outlining
the brine production flow rates, including a detailed analysis of the aquifer through tracers, to confirm the
final reservoir development plan.
The Demo Facility will be operated in three phases:
Phase 1: Commissioning
• The 30 column DLE system, along with the purification equipment, all currently being manufactured,
is being built to replicate the process operations of the commercial system.
• This system will be paired with the lithium carbonation equipment already operational.
• This commissioning will be completed with previously produced brine to minimize risk and ensure
proper operations.
• Phase 1 commissioning will conclude upon confirmation of the successful production of battery-
grade lithium carbonate.
Phase 2: Wells and 30 column DLE Demonstration Facility Operations
• Drilling of two wells for the production test will occur within the Clearwater Project Area.
• Upon drilling and well completion, the wells will be tied into the Demo Facility to enable continuous
operations on-site.
• The wells and 30 column DLE system, along with the downstream processing into lithium
carbonate, will operate to confirm the data required for the Feasibility Study and the continuous
production of battery quality lithium carbonate.
Phase 3: Full Scale Single Column Operation
• Following the successful completion of Phase 2, the full-size single commercial column DLE
system will commence fully integrated operations.
• The purpose of this system is to outline the performance modelled “at” commercial scale by
operating a single full-size commercial column. This is important to support project financing and
strategic partner conversations.
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Following the successful commissioning and data collection phase, both DLE systems will likely operate as
needed for several years, feeding the purification and carbonation system to regularly produce battery
quality lithium carbonate for pre-qualification.
Advance Strategic Partnerships & Offtake Agreements
E3 Lithium continues to progress discussions with potential customers in the automotive, battery cathode
and battery cell sectors, as well as within the energy and mining space. E3’s goal is to secure a strategic
partner for the project, either through an offtake agreement or through direct project participation. E3 offers
one of the nearest to construction, battery quality lithium projects in North America. With a streamlined and
transparent permitting process and compelling value proposition E3 is looking to position itself to be
financeable in 2026.
E3 is actively engaged in conversations with other industry participants with a focus on advancing our
relationships built over the years to secure a partner that values a long-life project within a secure and
stable jurisdiction to bolster their value chain or to provide an entry into the lithium industry. With supply of
critical minerals, especially lithium, increasingly becoming a focal point for global energy and national
security, projects such as the Clearwater Project are well positioned to attract interest.
Strategic Assets for Future Value Creation:
With the technical demonstration of lithium production in Western Canada, E3’s strategic land holdings can
add significant potential short- and long-term value. In addition to the Clearwater Project, E3 has several
other assets that when developed may add significant future value.
• South Bashaw: Working with Pure Lithium to advance the integration of a battery production
processes using E3’s brine and processing technology. Upon successful completion of this work,
the companies will look towards commercialization, which could include a joint venture
development on the South Bashaw area.
• North Bashaw: North of the Clearwater Project, E3 holds similar sized resources with similar
potential as the Clearwater. E3 is working on a Pre-Feasibility Study across a portion of this area
that may outline additional value and continuation of adding to our significant reserve base.
• Saskatchewan Lithium: E3 Lithium's strategic position in the Estevan lithium belt presents
additional value creation opportunities. The Company will evaluate strategic options for these
assets while maintaining focus on Alberta development.
• Garrington: The western trend of the Leduc Aquifer held by E3 also hosts substantial lithium-
enriched brine and lithium resources. A Resource update is planned for mid-2025 that will
incorporate the full aquifer trend, informing future development strategies.
• Nisku Aquifer: Situated above the Leduc Aquifer, historic sampling has outlined similar lithium
concentrations in the Nisku Aquifer. The Company will evaluate the potential for co-production and
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additional unique production opportunities to increase well rate and enhance potential project
economics by reducing capital requirements.
Market Information
During 2024, the lithium development industry experienced significant M&A activity with General Motors, Rio
Tinto, Equinor, Volkswagen and others entering the space in a meaningful way. In the automotive industry,
global sales of Electric Vehicles grew at 25% relative to 2023, with a total of 17.1 million EV’s sold. In North
America, EV sales increased 9% year over year3. Additionally, the rapid expansion of renewable energy
storage installations across North America has emerged as a primary driver for the battery energy storage
system (ESS) market. The lithium-ion battery segment dominates this market, commanding approximately
90% of the market share in 2024 and has a projected growth of around 9% from 2024 to 2029, driven by
increasing adoption in renewable energy integration, grid stabilization, and backup power applications4.
With the lithium market beginning to stabilize and the forecast growth in the EV and ESS segments
remaining robust, the expected demand for lithium is continually rising. This, combined with the challenging
pricing environment for lithium in 2024, has led to a slow down in the development of some projects leading
to a lag in new supply of battery quality lithium products. As a result, market analysts predict that the
demand for lithium will remain strong through the end of the decade and beyond3.
E3 Lithium's Strengths Going into 2025
Financial Position: E3 has approximately $18.4 million in working capital and existing undrawn financial
grants of ~$23M at the end of 2024.
Governmental Agency Support: E3 Lithium is grateful to have received strong support from several
government agencies including Emissions Reduction Alberta - $5million , Natural Resources Canada -
$3.55million, Strategic Innovation Fund - $27million and Alberta Innovates - $1.8M, providing non-dilutive
funding while validating our project's importance to Canada's critical minerals sector.
First-Mover Advantage in a Friendly Resource Development Jurisdiction: E3 Lithium combines several key
competitive advantages that position us as the leader in North America's lithium sector:
• World-Class Resource: The broader Bashaw District hosts one of Canada's largest sources of
lithium resources with 16.2 Mt of lithium carbonate equivalent (LCE) in Measured and Indicated
resources, capable of supporting multiple commercial facilities. The potential production of
approximately 200,000 tonnes of battery-grade lithium annually with an estimated 50-year life, will
position E3 as a significant long-term, secure source of lithium for Canada, US, EU and Asia.
3 Rho Motion: Over 17 million EVs sold in 2024 – Record Year, January 14, 2025
4 Mordor Intelligence: North America Battery Energy Storage System Market Size & Share Analysis - Growth Trends
& Forecasts
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• First to Market in Canada: E3 is strategically positioned to be Canada's first lithium-in-brine
producer, addressing critical North American supply shortages where regional demand significantly
outpaces current production. The Clearwater Project will integrate DLE technology with standard
downstream chemical conversion to produce battery-grade lithium carbonate, marking a first for
Canada's critical minerals sector and complimenting Canadian national security initiatives.
• Premier Regulatory Framework: Operating in Alberta's established regulatory environment, E3
benefits from the new Mineral Resource Development Act and associated Brine-hosted Mineral
Resource Development Rules. This streamlined framework is leading the industry and sets a clear
approval process with well-established permitting timelines. With the permitting in Alberta, we have
the opportunity to be shovel ready by mid-2026, putting us as one of the few battery grade lithium
projects to be able to get off the ground before the end of the decade.
• Superior Infrastructure Foundation: We have secured an option to purchase land for the CPF in
Central Alberta for the Clearwater Project. This preferred site is strategically located to leverage
existing essential infrastructure, including accessible utilities and roadways, a skilled workforce
and an established service sector. This mature industrial ecosystem significantly reduces capital
requirements and accelerates development timelines compared to greenfield projects.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Doornbos, President & CEO
E3 Lithium Ltd.
E3 Lithium - Investor Relations
Alexis de la Renaudiere
Investor Relations
587-324-2775
E3 Lithium - Media Inquiries
Kati Dolyniuk
External Relations
587-324-2775
About E3 Lithium
E3 Lithium is a development company with a total of 16.2 million tonnes of lithium carbonate equivalent
(LCE) Measured and Indicated 1 as well as 0.9 million tonnes LCE Inferred mineral resources2 in Alberta and
2.5 million tonnes LCE Inferred mineral resources3 in Saskatchewan. The Clearwater Pre-Feasibility Study
outlined a 1.13 Mt LCE proven and probable mineral reserve with a pre-tax NPV8% of USD 5.2 Billion with a
29.2% IRR and an after-tax NPV8% of USD 3.7 Billion with a 24.6% IRR1. E3 Lithium’s goal is to produce high
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purity, battery grade lithium products to power the growing electrical revolution. With a significant lithium
resource and innovative technology solutions, E3 Lithium has the potential to deliver lithium to market from
one of the best jurisdictions in the world.
1: The Clearwater Project NI 43-101 Pre-Feasibility Study, effective June 20, 2024, is available on the E3
Lithium’s website (https://e3lithium.ca/our-assets/technical-reports/) and SEDAR+ (www.sedarplus.ca).
2: The mineral resource NI 43-101 Technical Report for the North Rocky Property, effective October 27,
2017, identified 0.9 Mt LCE (inferred) and is available on the E3 Lithium’s website
(e3lithium.ca/technical-reports) and SEDAR+ (www.sedarplus.ca).
3: The mineral resource NI 43-101 Technical Report for the Estevan Lithium District, effective May 23, 2024,
identified 2.5 Mt LCE (inferred) and is available on the E3 Lithium’s website (e3lithium.ca/technical-
reports) and SEDAR+ (www.sedarplus.ca).
Unless otherwise indicated, Kevin Carroll, P. Eng., Chief Development Officer and a Qualified Person under
National Instrument 43-101, has reviewed and is responsible for the technical information contained on this
news release.
Forward-Looking and Cautionary Statements
This news release includes certain forward -looking statements as well as management’s objectives,
strategies, beliefs and intentions or forward -looking information within the meaning of applicable securities
laws. Forward-looking statements are frequently identified by such words as “believe”, “may”, “will”, “plan”,
“expect”, “anticipate”, “estimate”, “intend”, “project”, “potential”, “possible” and similar words referring to
future events and results. Forward -looking statements are based on the current opi nions, expectations,
estimates and assumptions of management in light of its experience, perception of historical trends, and
results of the PFS, but such statements are not guarantees of future performance. In particular, this news
release contains forwar d-looking information relating to: the estimated mineral resources and mineral
resources at the Clearwater Project; expectations regarding the PFS, including statements regarding the
results of the PFS and interpretations thereof; expectations concerning t he Clearwater Project, including
extraction, production, pretreatment, purification, volume reduction and conversion process and features and
the expected outcomes thereof; the expected economic performance of the Clearwater Project, including
capital cost s, operating costs, water usage, land use and carbon emissions; statements regarding the
Company’s strategy for minimizing environmental impact and liquid waste and maximizing water reuse, with
no planned tailings or waste piles; the potential for a secondary revenue stream should the Company be able
to sell the calcium carbonate generated during the production of lithium hydroxide; plans and objectives of
management for the Company’s operations and the Clearwater Project; and the inherent hazards associated
with mineral exploration and mining operations. In preparing the forward -looking information in this news
release, the Company has applied several material assumptions, including, but not limited to, that any
additional financing needed will be available on reasonable terms; the exchange rates for the U.S. and
Canadian currencies will be consistent with the Company’s expectations; that the current exploration,
development, environmental and other objectives concerning the Clearwater Project can be achieved and that
its other corporate activities will proceed as expected; that the current price and demand for lithium will be
sustained or will improve; that general business and economic conditions will not change in a materially