Phase two will result in the creation of a complete brine-to-battery-grade lithium carbonate process system.
Phase two will include drilling a production well and an injection well to study the reservoir properties and flow capacity of the Leduc Aquifer. The data collected will guide the design of the commercial well system, gathering network, and treatment infrastructure for E3 Lithium’s future commercial facility. Once completed, the wells will be integrated with the existing 30-column direct lithium extraction (DLE) system and purification units established in phase one. This will create a complete brine-to-battery-grade lithium carbonate production process.
The company expects to begin drilling operations in early to mid-October, once commissioning of phase one is finalized. E3 Lithium has obtained several authorizations from the AER to support its demonstration activities. These include approval for a mineral scheme under Directive 065, which allows for subsurface injection of produced fluids. The project also received permits for mineral wells and a mineral facility under Directive 056, covering the technical and licensing conditions required for operation.
Chris Doornbos, president and CEO of E3 Lithium, stated: “We are thrilled to see the permits granted for Phase 2 of our Demonstration Facility, including the recently approved Directive 065, and look forward to launching the drill programme to kick off the next phase of technology demonstration.”
These approvals are significant not only for the demonstration facility but also for future commercial operations. They represent the first set of permits granted under Alberta’s Brine-Hosted Mineral resources regulations. In addition, E3 is finalizing the Directive 056 application for its planned commercial facility, which will be submitted alongside an application under the Environmental Protection and Enhancement Act.
In July 2025, the company confirmed the arrival of key equipment at the Clearwater Project. This equipment supports the 30-column DLE system and is designed to serve both phases of the testing program. The phased approach highlights E3 Lithium’s strategy to validate reservoir performance, demonstrate extraction and processing technologies, and lay the foundation for commercial-scale lithium production.
By securing regulatory approvals and advancing field activities, E3 Lithium is positioning the Clearwater Project to play a role in supplying battery-grade lithium carbonate, which is essential for energy storage and electric vehicle applications.
