Arrival of the key components of Prairie Lithium’s direct lithium extraction hardware on July 9, 2026. Photo by Brian Zinchuk

 

Editor’s note: These past few months have been a whirlwind and I’ve been on the road for most of the last month and indeed summer. Much of that has been dealing with some family affairs. The wheel literally fell off my suitcase today. That means there’s a lot to catch up on including a major announcement from lithium developer EMP Metals last week as well as Prairie Lithium earlier this summer. Additionally, there are major pieces on the coal injunction, Lloydminster Heavy Oil Show, nuclear power and more coming down the pipe and yet another major announcement on Tuesday. So watch for all that in greater detail as soon as I’m able to catch a breath. This particular piece came out late on Sept. 28.

 

EMERALD PARK – Prairie Lithium announced on Sept. 28 it has been approved for CAD $6.3m (AUD $6.3m) in financing from the Government of Canada. The financing is being provided through the Business Scale-up and Productivity (BSP) program, administered by PrairiesCan, and provides interest-free repayment commencing in 2029.

The BSP program is designated to support high-growth businesses seeking to improve productivity, scale-up and commercialise technology. PrairiesCan funding enables the next phase of construction at Prairie, including the procurement and installation of additional balance-of-plant systems and processing equipment.

With these activities progressing, the Company will commence lithium brine production from its first commercial well in Q4 2026.  Following commencement of commissioning, Prairie Lithium intends to progressively bring the pre-treatment, DLE, and lithium chloride (LiCl) concentration systems into operation and scale Phase 1 up to its intended production capacity of 150 Tonnes Per Annum (TPA) of Lithium Carbonate Equivalent (LCE)4 in the form of a Lithium Chloride, for the sale under the Company’s binding offtake agreement with Hydro Lithium.

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Notably, Alberta-based lithium explorer E3 Lithium had previously received significant federal funding. On March 2, E3 received conditional approval for up to $36.5 million in federal government funding to advance its Clearwater project. That announcement said, “The Funding supports 75% of the forecasted $48 million project to complete E3’s Demonstration Facility Phase 3 and its Clearwater Project Feasibility Study. With the Funding, E3 will accelerate and expand the scope of the Demonstration Facility that will enable the Company to build and operate its third phase (see E3’s corporate presentation), located east of Olds, Alberta. Phase 3 of the Demonstration Facility will include a single, full-sized commercial column, expected to produce the carbonate equivalent of 100 tonnes per year in lithium chloride. The Funding will also support the Company’s Front End Engineering Design (FEED) that will form part of the Clearwater Project’s Feasibility Study and the technical staff involved in the project, including hiring an additional 25 full time positions.”

In contrast, Prairie Lithium’s initial phase is expected to produce 150 tonnes per year.

Zach Maurer, executive director of Prairie Lithium, said in an X post, “Incredibly excited to announce today a $6.3 million investment from the federal Government of Canada into the Prairie Lithium project here in Southeast Saskatchewan. This funding is non dilutive, and it’s a testament to the quality of the project that we’re building here in Saskatchewan. We know we’ve got a lot of great things in motion. We’ve got our production well drilled, disposal well drilled. We’ve got our permits, our commercial permits for our first phase of production. We’ve got a binding offtake to sell that first phase of production into, and now we’ve got support from the government of Canada investing into our project, so a lot of great things coming down the pipe here this fall. This funding is going to be used to support our next phase of construction procurement, well re-entries. So incredibly excited to get this initiative announced.”

Prairie Lithium Executive Chairman Paul Lloyd said in a release, “We are very grateful for the support from the Canadian Government and this funding is a very important and additional step in the long-term encouragement and assistance that has been provided by the Federal and the Saskatchewan governments for this world class lithium project. 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.  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.”

 

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Lithium in SK, Part 43: Veritasium explains why lithium is so important for batteries

Lithium in SK, Part 42: South Korean offtake for Prairie Lithium

Lithium in SK, Part 41: ROK is out of the lithium game, and privatizing as a strictly oil company

Lithium in SK, Part 40: In depth with Energy and Resources Minister on new lithium royalty scheme

Lithium in SK, Part 39: Province defines lithium royalty structure, based on potash, not oil

Lithium in SK, Part 38: Arizona Lithium is again Prairie Lithium

Lithium in SK, Part 37: EMP Metals gets Sask Critical Minerals Program support, permits, and starts construction on Viewfield demo plant

Lithium in SK, Part 36: Arizona Lithium to use Long Creek Rail for product shipment

Lithium in SK, Part 35: Higher prices per hectare for lithium seen in July 7 Crown sale

Lithium in SK, Part 34: Arizona Lithium all-in on Saskatchewan Prairie Lithium project as it sells its Arizona project

Lithium in SK, Part 33: Arizona Lithium’s path to commercialization this year

Lithium in SK, Part 32: EMP Metals announces results from step-out well near Stoughton

 

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Lithium in SK, Part 31: Critical Mineral Incentives implemented

Lithium in SK, Part 30: Hub City Lithium completes pilot, changes ownership structure, and is drilling near Stoughton

 

Lithium in SK, Part 29: Arizona Lithium begins drilling commercial production wells near Torquay

Lithium in SK, Part 28: Hub City Lithium operating direct lithium extraction pilot in Estevan

Lithium in SK, Part 27: Lithium Bank sells Estevan area land to unnamed buyer

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Lithium in SK, Part 26: Enter the big boys: 70-year-old Denison Mines buys into Grounded Lithium’s Kindersley project

Lithium in SK Part 25: Primacy of rights, revisited

Lithium in SK, Part 24: Hub City Lithium releases preliminary economic assessment for Viewfield project

Lithium in SK, Part 23: November Crown land sale shows expanding positions

Lithium in SK, Part 22: Arizona Lithium is running its pilot plant for Torquay project, elaborates on commercialization plans for 2025

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Lithium in SK, Part 21: Arizona Lithium begins work on future commercial site near Torquay

Lithium in SK, Part 20: Hub City Lithium again finds some of the high concentrations in Canada, announcing second test well results

Lithium in SK, Part 19: Grounded Lithium’s Kindersley project could cost $447 million to build, but bring in $350 million per year

 

Lithium in SK, Part 18: Hub City Lithium drills second targeted well in Viewfield area, near Stoughton

Lithium in SK, Part 17: Lithium prices have come down … to only US$70,000 a tonne. A decade ago, they were US$7,000

Lithium in SK, Part 16: Arizona Lithium closes Prairie Lithium deal

Lithium in SK, Part 15: Grounded Lithium lays out its development plan

Lithium in SK, Part 14: Prairie Lithium gets federal money, acquisition deal to close soon

Lithium in SK, Part 13B: Hub City announces highest lithium concentration to date, by a significant margin

Lithium in SK: Part 13: Coming into lithium with revenue already flowing from oil

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Lithium in SK, Part 12: Hub City Lithium shows promising results northeast of Weyburn

Lithium in SK, Part 11: A detailed video on lithium geology in SE Sask

Lithium in SK, Part 10: A helium explorer who found lithium responds

Lithium in SK, Part 9: And the acquisitions begin, with Prairie Lithium to be acquired by Arizona Lithium

Lithium in SK, Part 8: Ministry of Energy and Resources response to primacy of rights issues

Lithium in SK: Part 7b: The rent’s due, and so is the LLR

Lithium in SK, Part 7: Dealing with an embarrassment of riches – sorting out the primacy of rights

Lithium in SK, Part 6: Direct Lithium Extraction is the multi-billion dollar question

Lithium in SK, Part 5: Prairie Lithium – Old wells or new wells?

Lithium in SK, Part 4: Prairie Lithium pursuing the idea there could be lithium in those brines

Lithium in SK, Part 3: Crown land sale reveals sixth entrant in Saskatchewan lithium exploration race

Lithium in SK, Part 2: Saskatchewan government launches lithium incentives

Lithium in SK Part 1: As the race for lithium takes off, Saskatchewan is seeing the dawn of a new industry