The Canadian government has committed C$6.3-million in financing for ASX-listed Prairie Lithium‘s project in Saskatchewan, which will support Phase 1 production, including balance-of-plant systems required for a commercial-scale direct lithium extraction (DLE) plant of this nature.
The funding has been funnelled through the Business Scale-up and Productivity Programme (BSP), which is administered by economic growth promotion agency Prairies Economics Development Canada.
Prairie Lithium aims to become the first commercial-scale Canadian producer of lithium from oilfield brine, with first lithium brine production expected in the fourth quarter this year.
The BSP is designated to support high-growth businesses seeking to improve productivity, scale up and commercialise technology, with Prairie Lithium‘s interest-free repayments only starting in 2029
Prairie Lithium plans to progressively start operating pre-treatment, the DLE and a lithiumchloride concentrate system once commercial production from the oilfield well is underway. Phase 1 of the Prairie project targets production of 150 t/y of lithiumcarbonate-equivalent in the form of lithium chloride, which is bound to an offtake agreement with Hydro Lithium.
“Saskatchewan hosts the highest-grade lithium brines in Canada, and we are pleased to see this significant and ongoing federal government support for the development of a major industry in Saskatchewan,” says Prairie Lithium executive chairperson Paul Lloyd.
“With funding and offtake agreements in place, we look forward to a very busy year of construction as we advance our project into production and contribute to the development of the Canadian lithium industry,” Lloyd concludes.