[SMM News] Prairie Lithium garners C$6.3m federal Canadian funding to reach initial production

Published: Oct 05, 2026 20:33 (GMT+8)

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SMM Sep 29: Prairie Lithium has secured C$6.3 million in federal financing for its Saskatchewan project through the Business Scale-up and Productivity Program, administered by Prairies Economic Development Canada. The funds will support Phase 1 production, including balance-of-plant systems for a commercial-scale direct lithium extraction (DLE) plant. Repayments are interest-free and start in 2029.

Phase 1 targets 150 mt/y of lithium carbonate equivalent (LCE) as lithium chloride from oilfield brine, with the entire volume covered by an offtake agreement with Hydro Lithium. First brine production is expected in Q4 2026, which would make Prairie Lithium Canada's first commercial-scale lithium producer from oilfield brine.

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