E3 Lithium Executes Contribution Agreement Underpinning up to $36.5 million in Federal Support to Accelerate Clearwater Project

Executive Summary

• E3 Lithium has executed a contribution agreement securing up to $36.5 million in non-repayable funding from Natural Resources Canada’s Global Partnerships Initiative (GPI) to advance the Clearwater Project.
• The funding covers 75% of the ~$48 million project cost, accelerating the final phase of the Demonstration Facility and the completion of the Feasibility Study, directly targeting a Final Investment Decision (FID).
• Key technical milestones include constructing a single commercial DLE column, targeting >85% lithium recovery, producing up to 100 tonnes of lithium carbonate annually, and completing Front-End Engineering Design (FEED) by Q1 2027.

Key Details

• Funding Structure & Amount: Up to $36,507,091 in non-repayable funding from NRCan’s GPI, covering 75% of the ~$48 million project cost.
• Retroactive & Claim Period: Funding is retroactive to April 1, 2026, with eligible expenses claimable from the start of Q2.
• Demonstration Facility Phase 3: Equipment orders commenced for the final phase, including operation of the previously commissioned 30-column DLE and purification/carbonation skids, plus construction/operation of a single commercial DLE column.
• Phase 3 Technical Goals: Construction through H2 2026; demonstrate lithium recovery >85%; produce lithium chloride equivalent to up to 100 tonnes of lithium carbonate per year; validate product quality for offtake partners at increased scale.
• Feasibility Study Scope: Supports completion targeting 12,000 tonnes/year of battery-grade lithium carbonate in Stage 1. Engineering deliverables cover final designs for reservoir development, gas-handling, lithium extraction, purification, and carbonation.
• Engineering & FID Timeline: Completion of Front-End Engineering Design (FEED) and Class III cost estimate targeted for Q1 2027, positioning the project for long-lead equipment ordering and FID.
• Engineering Contractor: Sedgman (a CIMIC Group Company) retained to lead FEED for the Clearwater Project, leveraging expertise in DLE technology and commercial-scale lithium processing.
• Workforce Expansion: Funding supports 75% of current technical team costs and includes a commitment to hire up to 25 new technical staff and operators.
• Strategic Impact: Phase 3 completion serves as a major derisking milestone to validate process performance, reliability, and scalability, critical for securing strategic partners, project financers, and potential future government support.

Notable Quotes

• Honourable Tim Hodgson, Minister of Energy and Natural Resources: “Canada is building strong domestic critical minerals value chains, and that means investing at the stages that matter most in getting projects over the line. Through the Global Partnerships Initiative, we are supporting the engineering, demonstration and feasibility work needed for E3 Lithium’s Clearwater Project to reach final investment decision. This is how we move faster, reduce risk and ensure sustainable, sovereign Canadian lithium can power our economy at home and supply our allies abroad.”
• Chris Doornbos, CEO & Chair: “With the execution of the contribution agreement, E3 is now fully executing towards some of the biggest technical milestones we have in front of us, aiming to significantly derisk our Clearwater Project ahead of the final investment decision. We appreciate the Government of Canada’s support in advancing a domestic lithium supply chain and strengthening Canada’s position in the global critical minerals market.”