Saskatchewan Welcomes First Lithium Extraction Project
The demand for lithium has been steadily increasing, with projections of 10% growth per year over the next four years. Much of the global demand for lithium is attributed to its increasing use in rechargeable batteries, lubricants and greases, as well as the production of ceramics and glass. Due to the increase in global demand, the province of Saskatchewan is welcoming a new two-stage pilot project that will see lithium hydroxide produced from oilfield brines.
The new project is a joint venture between Prairie Lithium Corp. and LiEP Energy Ltd, and will be eligible for 25% of royalty credits towards operating and capital expenditures. The project has also received conditional approval from the Ministry of Energy and Resources as per the Saskatchewan Petroleum Innovation Incentive.
The first stage of the project will be based in Regina, and will commence in July; this stage is expected to produce between 1 to 1.75kg of lithium hydroxide per day. The second stage of the project will be remotely located in southern Saskatchewan and will consist of the construction of a lithium extraction and refining facility – the first of its kind in Canada. The start-up date for the second portion of the project is slated for the latter half of 2021, and once completed, is anticipated to produce up to 1 tonne of lithium per day.
This unique Saskatchewan project has the potential to turn into a disruptive technology, given that the process of turning raw brine into refined lithium is expected to take approximately 6 hours – a significant upgrade of current industry duration of 18 months.
Information for this briefing was found via Government of Saskatchewan. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
