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E3 ME
Lithium hydroxide production from brine usi
ETALS
ing revolutionary DLE processing technology
MINING | E3 METALS
When future generations look back at the current era of societal development, they will likely view the COVID-19 pandemic as a human tragedy first and foremost, but also as ‘the great accelerator’ of various economic forces and social trends, the most important of which being the global green energy transition.
E3 Metals’ goal is to support
The decarbonisation of transport is one aspect of this process that was solidified in a COVIDdominated 2020, as auto manufacturers made increased commitments to electrifying their fleets and governments in key markets legislated aggressive pro-electric vehicle (EV) policies.
Contemporary lithium brine
The combination of improving conditions for EVs, attempts to secure high quality supply of critical minerals and the solidification of the lithiumion and lithium batteries for mobile electrification has provided the perfect springboard for E3 Metals to catapult itself into North America’s battery metals/ EV supply chain with its unique lithium brine project in Alberta, Canada.
developed a simple, clean
the global EV revolution by producing battery grade lithium hydroxide using a novel processing technique that is set to revolutionise how lithium concentrate is removed from brine in Alberta and around the world.
production is dominated by the vast white deposits within Latin America’s lithium triangle, where time consuming and antiquated methods are required to extract the valuable lithium from the dry salt flats. However, E3 Metals has method for generating lithium hydroxide from the prolific Leduc Reservoir in Alberta, where brine is currently being produced to surface through extensive oil and gas development. Producing a crucial metal for the green energy revolution in a former oilfield is rather poetic and almost a microcosm of the transition taking place in
MINING | E3 METALS
the global economy, and the
support those hydrocarbon-
local economy at that. With a
based businesses,” explains
large-scale resource and game-
E3 Metals president, CEO
changing processing method,
and director Chris Doornbos.
E3 Metals is at the vanguard of
“However, decreasing oil
the transition.
prices have had a huge impact
The Alberta advantage
on the local economy and the Province is looking to diversify.”
Lithium production in Alberta operates similarly to the way
Fortunately, the Provincial
hydrocarbon production
Government does not have
operates, by moving fluids
to look far in its quest for
from the aquifer to extract the
diversification. In fact, the
commodity. This process has
answer lies in the lithium
been in place since the first
brine located below surface
discovery of ‘black gold’ in the
in the depleted oil reservoirs
1940s, thus kicking off the oil
of the Leduc Formation. All
rush in Alberta.
that is required is for an entity to extract the ‘white gold’ and
This boom created a mature
process it into the valuable end
industry in the province
use product. Step forward E3
whereby expertise, social
Metals.
licence, infrastructure, permitting and skilled labour
The company is advancing a
already exist and can be
significant lithium resource by
transferred to a lithium project
producing in the same manner
with ease.
as the established local industry. The key difference
“In Alberta, the majority of
is that E3 Metals deploys its
industry is hydrocarbon-
own proprietary direct lithium
based and the surrounding
extraction (DLE) technology
infrastructure is built to
that will extract the lithium
“The PEA outlined a 20,000 tonnes per year lithium hydroxide operation for 20 years, and that is just a very small snapshot of what this aquifer can deliver. The initial project will deliver an aftertax NPV of US$820 million and bottom quartile operating costs at around $3,656 per tonne” Chris Doornbos, E3 Metals president and CEO
from the brine waters in
Being in the heart of a mature
Alberta and produce lithium
and sophisticated oil industry
hydroxide.
brings myriad benefits to E3 Metals, including a pre-
E3’s proprietary technology
existing regulatory framework
enables them to concentrate
for natural resource
and purify in a single step,
development, an industry-
leading to a much simpler and
friendly government keen
cleaner product. As a result, it
to diversify and access to an
can be sold directly to battery
underutilised workforce, along
manufacturers and original
with a high-quality selection of
equipment manufacturers
service companies.
(OEMs) in North America’s growing EV sector, where the
“All of the expertise we need
value of a local and low carbon
to build the Clearwater Project
footprint source of high purity
is here locally. Resource
lithium hydroxide would
development has well-
provide huge incentives to
developed social licence in the
deal-making.
area and a permitting process that routinely approves activities similar to E3’s.
MINING | E3 METALS
Through the relationships
take a larger global position
aquifer can deliver. The initial
and foundational groundwork
as the resource is open for
project will deliver an after-
laid out so far, our project has
expansion.
tax NPV of US$820 million
been significantly de-risked as
and bottom quartile operating
we continue to pave the path
In November 2020, E3 Metals
costs at around $3,656 per
toward to production.”
published its preliminary
tonne,” says Doornbos.
A globally significant resource
economic assessment (PEA) for the Clearwater resource.
“The low opex estimate
The thorough study was
is important for us to
based on extensive data on
remain resilient with price
The flagship Clearwater
the Leduc aquifer, which was
fluctuations, but it also helps
Project is currently comprised
first discovered in 1947 by
us generate a lot of revenue
of a 7.0 million tonnes lithium
ExxonMobil.
from the project,” he adds.
carbonate equivalent (LCE)
E3 Metals believes that the
inferred mineral resource
“The PEA outlined a 20,000
Clearwater Project can scale
– making it approximately
tonnes per year lithium
up from the initial 20,000
the seventh largest lithium
hydroxide operation for 20
tonnes per year to 50,000
resource in the world right
years, and that is just a very
tonnes with relative ease for
now – with the potential to
small snapshot of what this
a 35-year total mine life at the
two other project areas (Rocky
a time, though, we are staying
expanded production rate.
and Exshaw) in the Leduc
focused on delivering 20,000
Reservoir that both hold the
tonnes by 2024 and will grow
The expansion plans don’t end
potential for 50,000 tonnes of
our production base from
there. E3 Metals also owns
production each. This would
there.”
equate to 150,000 tonnes over
E 3 M E TA LS AT A G L A N C E
a 35-year period, according to
Developing DLE
Doornbos.
Doornbos is cognisant of the need to demonstrate a
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MARKET CAPITALISATION US$75 million (as of January 29, 2021)
aj
“Those are just the resources
working process flowsheet
we are developing. We also
for producing battery
have land that we haven’t
grade lithium hydroxide
worked on. There is significant
on a commercial scale. E3
expansion potential that few
Metals first produced lithium
other lithium projects can
hydroxide from the Leduc
match. The company’s goal is
brine in May 2019, using
to become a major supplier of
its DLE process that was
lithium hydroxide to a rapidly
developed in partnership
expanding market. One step at
MINING | E3 METALS
with world-leading chemical
quickly and efficiently remove
conventional methods into
manufacturer Livent.
lithium from the brine without
high value lithium products.
the need for evaporation Consistent lab testing using
ponds, to produce a high
“We’re one of the few DLE
the in-house DLE technology
purity lithium concentrate
technology development
has shown that E3 Metals can
that can be processed using
companies that also owns its
MINING | E3 METALS
Chris Doornbos, E3 Metals president and CEO
own resource, so we do not
production with higher
of the land area compared
have to shop for projects to
recoveries (at rates over 90%
to conventional evaporation
deploy the technology. The
according to latest testing),
projects or mining operations.”
goal for us is to produce our
no tailings and minimised
own lithium hydroxide with
freshwater usage. In fact, E3
The company plans to
our own technology, and that
Metals’ technology allows it to
produce an independent life
is what DLE gives us. It’s a
return brine to the reservoir,
cycle analysis (LCA) within
big piece of what we’ve done;
creating an environmentally
the next 12 months that will
having it 100%-owned by E3
friendly closed loop system.
outline a clear ESG strategy.
brings a lot of value to the company.”
For example: “By operating “We also have the ability to go
a gas-fired power plant, we
net-zero carbon emissions,
can capture the CO2 from
In comparison to pre-existing
not consume fresh water and
the exhaust gas and dispose
lithium brine processing
not generate any tailings. Our
of it in the waste stream
methods, DLE offers faster
project will also use only 3%
going back into the aquifer.
This is a process that has been perfected in Alberta,� Doornbos proclaims.
2021 and beyond As we enter the last week of January 2021, E3 Metals is about to cut the ribbon on its pilot development facility in Calgary. This is a huge step towards demonstrating a scaled down but commercially viable model of what the company can deliver. The company’s goal is to have a prototype running by around mid-year. The benefits for this will be two-fold, firstly to form the design basis for the field pilot, aimed to be under construction during the second half of 2021. Secondly, the company plans to use this prototype to test other brines to develop a potential new project pipeline. As E3 Metals arches towards a pre-feasibility study for the Clearwater Project, a CHRIS DOORNBOS, E3 METALS PRESIDENT AND CEO
smaller ticket item will be to
MINING | E3 METALS
upgrade the current resource
emissions lithium product will
for lithium hydroxide move
to measured and indicated.
generate a lot of interest with a
very strongly. This is the
Without the need to conduct
battery manufacturer.”
perfect time to be bringing our
any further drilling on the
production on stream.
Leduc Reservoir, the resource
Doornbos adds: “We are
upgrade should be achievable
contemplating our options
“Supply does not move as
at a fairly minimal expense,
to bring in the right strategic
quickly as demand can move,
Doornbos says.
partner that would assist E3
so that generates a strong
in taking this project to the
market for our product and we
However, the key goal for 2021
next level. We want to work
are well timed and positioned
will be for E3 Metals to finalise
with a group that shares the
for our project to get into
its flowsheet development
same vision for the Clearwater
production. We believe this
and start producing lithium
Project and can help put
will allow the company to
hydroxide on a regular basis
this project into production
secure attractive contracts
from the concentrate it makes
successfully.”
for our initial production.
every day in the lab.
E3 Metals will then look to Having gone through the hard
expand production to meet
“That will be a big moment
yards at the project over the
market demand as it rapidly
for the company. We have
last four years, E3 Metals is
accelerates across the globe.”
made hydroxide before but
aiming to bring the initial
producing it at the scale we
Clearwater production online
want to this year means we can
in the mid-2020s, and the
start shipping it to potential
timing of market entrance
clients and customers in the
couldn’t be better according to
battery manufacturing space.
Doornbos.
“It will be a significant step
“All the latest projections
for E3 when we start to have
suggest that EV demand will
players in the battery industry
steadily pick up as we reach
evaluating our product and
price parity for EVs on a mass
considering us as a potential
market basis, and they are
supplier. We believe our goal
expecting this will happen
of having a net-zero carbon
around 2024-25. At that point you should start to see demand
Published by Anderson Murray Media Ltd
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