E3 Lithium receives $3.54M government funding for pilot plant, Alberta
E3 Lithium Ltd. [ETL-TSXV; EEMMF-OTCQX; OW3-FSE] has been awarded $3,545,000 in funding from Natural Resources Canada’s Critical Minerals Research Development and Demonstration (CMRDD) program.
Funds for the CMRDD program were allocated under the government of Canada’s federal budget 2021 to support the development of Canadian critical minerals in recognition of the crucial role they play in the energy transition. E3 Lithium was one of six organizations selected from applicants from across Canada.
“Canadian innovators are leading the way towards a cleaner future. Today’s investment of more than $3.5-million in E3 Lithium will help to advance the development of a dynamic and competitive critical minerals sector through the development and demonstration of innovative processing technologies. This means good jobs for workers, more investment in Canadian innovation, and lower emissions across the country – all part of our plan to build a cleaner Canada and a prosperous, sustainable economy that works for everyone,” said Jonathan Wilkinson, Minister of Natural Resources Canada.
The $3,545,000 in funding will be allocated in its entirety toward the design, construction and operation of E3’s field pilot plant [in Alberta], which is on track to begin operations in Q3 2023. Natural Resources Canada joins Alberta Innovates and the government of Canada’s Innovation, Science and Economic Development’s (ISED) Strategic Innovation Fund in providing support to E3 for the development of the lithium industry in Western Canada.
“We are ecstatic to receive funding from Natural Resources Canada to support the work we are doing to produce battery-grade lithium. Receiving support from all levels of government to develop our lithium resource speaks volumes to the importance placed on commercializing critical minerals from Alberta and the progress E3 has made in developing this industry,” said Chris Doornbos, president and chief executive officer, E3 Lithium.
The funding from the government of Canada is non-share dilutive and is not required to be repaid. E3 shall submit and be reimbursed for eligible expenses on a continuing basis throughout the term of the agreement. Additional and previously announced funding to support E3’s pilot plant includes a $1.8-million grant from Alberta Innovates and a $27-million conditionally repayable investment from the Strategic Innovation Fund to support a breadth of development costs toward E3’s commercial operations.
E3 Lithium is a development company with a total of 24.3 million tonnes of lithium carbonate equivalent (LCE) inferred mineral resources in Alberta. As outlined in E3’s preliminary economic assessment, the Clearwater lithium project has a net present value (8%) of US$1.1-billion with a 32% internal rate of return pretax and US$820-million with a 27% IRR after-tax. Through the successful scale-up of its DLE technology toward commercialization, E3 Lithium’s goal is to produce high-purity, battery-grade lithium products. 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.