PDAC JV video: Alberta demonstration plant set to make local lithium, E3 exec says

An 83% drop in lithium prices over the past three years still spells opportunity for E3 Lithium (TSXV: ETL; US-OTC: EEMMF) as it prepares to produce lithium in Alberta by September, CEO Chris Doornbos said.

Today’s prices hover around C$12,000 per tonne compared with about C$70,000 in 2022, which is evidence of an early-stage market, Doornbos said in an interview. Yet the long-term fundamentals remain strong, even more so, with mineral production being a key strength amid tightening global trade.

“I think the lithium market is still pretty immature,” Doornbos said during the PDAC convention in Toronto. “In these early stages, volatility is normal – but the long-term fundamentals remain,” he said early this month.

In Alberta, E3 will launch a demonstration facility by September. This facility will produce battery-grade lithium carbonate. The facility will begin with 12,000 tonnes per year and scale up to 36,000 tonnes over an envisioned 50-year production life.

The first phase of the project costs about C$2.5 billion in capital, a large sum for a small company, Doornbos admitted. Most of this funding will likely come from debt financing. Partnering with strategic investors can also help reduce the project’s risks, he said.

Watch below the full interview with Mining.com host, Devan Murugan.

Joint venture videos are paid-for content in arrangement with The Northern Miner