E3 Lithium to Invest US$2.5 Billion to Have 32,250 tpa of Lithium Hydroxide Capacity

On 26 June, E3 Lithium announced the pre-feasibility study for its Clearwater Project located in Alberta, Canada. The project will require an estimated US$2.5 billion to build 32,250 tons of lithium hydroxide monohydrate (LHM) production capacity.

Initial operating costs are estimated at US$6,200 per ton of LHM, and average operating cost is at US$7,250 per ton, with the LHM price estimated at US$31,344 per ton.

E3 plans to utilize 38 wellpads in the Leduc oil reservoir to extract lithium brine. The project highlights the employment of a direct lithium extraction process using an aluminate-based sorbent, coupled with recycled water and carbon sequestration to minimize emissions. A natural gas plant will power the operation.

Compared with previous disclosure, the study shows a significant improvement from a 2020 preliminary economic assessment, which had an after-tax net present value of US$820 million.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn