E3 Lithium has struck a strategic deal with German naval heavyweight thyssenkrupp Marine Systems (TKMS), linking Canada’s critical minerals sector directly to a high-stakes defense program: the Canadian Patrol Submarine Project (CPSP).
The newly signed teaming agreement lays the groundwork for integrating Canadian lithium into secure defense supply chains—while positioning both companies to capitalize on Canada’s plan to build up to 12 next-generation submarines.
At its core, the partnership is about more than raw materials. It establishes a pipeline for research, technology transfer, and potential investment, aligning with Canada’s Industrial and Technological Benefits (ITB) policy, which ties defense spending to domestic economic gains.
“Partnering with TKMS allows us to connect Canada’s critical minerals industry with strategic global markets, while supporting a transformative national defense program,” said Chris Doornbos, President and CEO of E3 Lithium. “This agreement is a strong step toward leveraging Canada’s lithium resources to create sustainable economic value, advance technology transfer, and strengthen industrial ties with Germany and allied nations.”
For TKMS, the deal secures access to a resource increasingly seen as vital to next-generation military technology.
“The CPSP represents a cornerstone of Canada’s naval capability, and critical minerals are essential to the technology that powers tomorrow’s submarines,” said Thomas Keupp, Chief Sales Officer at TKMS.
“Through this agreement with E3 Lithium, we are not only securing access to a sustainable supply of lithium but also strengthening the industrial partnership between Germany and Canada. This cooperation reflects our shared commitment to innovation, sustainability, and long-term capability development.”
TKMS is currently competing to supply the submarines under the CPSP, a program designed to deliver Arctic-capable vessels for the Royal Canadian Navy. The agreement with E3 strengthens its bid by tying it to a domestic, secure lithium supply—while opening the door to exports for allied defense industries.
The companies say they will also explore financing and investment pathways to scale Canadian lithium production for strategic use, though no binding transaction has been finalized.
Meanwhile, E3 continues to advance its Clearwater Project in Alberta, where it plans to extract lithium from brines using proprietary Direct Lithium Extraction technology and produce battery-grade lithium carbonate—part of a staged development strategy aimed at large-scale output.
The message is clear: as global defense priorities shift, the race for critical minerals is no longer just economic—it’s strategic.
