E3 Lithium is moving into a critical new stage of its flagship project.

 

The Canadian critical minerals company has announced it has completed well development and pump installation and is now poised to launch Phase 2 of its Demonstration Facility—an important step towards commercial lithium production.

 

The company said the multi-phase program is designed to prove it can reliably produce battery-grade lithium carbonate at scale, with Phase 2 focused squarely on unlocking key subsurface data.

 

As outlined on March 9, 2026, the two main goals of Phase 2 are to complete a reservoir production test to further delineate flow through the Leduc Reservoir and to collect water and gas chemistry data. The results are expected to directly shape the company’s Reservoir Development Plan, guiding well and pipeline design, permitting, and the engineering of critical processing systems.

 

The data gathered will also feed into the final stages of the Feasibility Study for the Clearwater Project—one of the last technical hurdles before a potential construction decision. Operations are expected to begin once regulatory licensing is received, with testing projected to run for 8–12 weeks.

 

Phase 2 builds on earlier work at the Demonstration Facility, which has been partially backed by $5 million in funding from Emissions Reduction Alberta.

 

At the same time, E3 Lithium is already preparing for the final and most decisive stage: Phase 3. This phase will centre on Direct Lithium Extraction (DLE) testing, combining an already commissioned 30-column system with purification and carbonation equipment, alongside the construction of a full-scale commercial DLE column.

 

Backed by conditional funding support from the Government of Canada’s Global Partnerships Initiative, the company plans to build out the full-scale unit over the summer.

 

While Phase 2 is focused on engineering data, Phase 3 is designed to deliver a real-world proof of concept—demonstrating a continuous process from brine to battery-grade lithium carbonate. 

 

At full operation, the system is expected to produce nearly 100 tonnes per year of lithium carbonate equivalent in lithium chloride, material that will support ongoing offtake negotiations.

 

Crucially, running the DLE system at full commercial scale with live brine is intended to validate performance for investors, partners, and regulators—laying the groundwork for financing the first phase of the Clearwater Project, which aims to produce 12,000 tonnes of lithium carbonate annually.