Arizona Lithium, an Australia-based lithium developer, reached a significant milestone this week by producing its first battery-grade lithium carbonate at the Prairie project in Saskatchewan, Canada. This development marks the first time lithium has been mined and refined to battery-grade quality in the province. The lithium carbonate produced has been verified by Saltworks Technology, a Vancouver-based company specializing in wastewater treatment and lithium refinement.
This achievement is not only a milestone for Arizona Lithium but also for the Canadian province of Saskatchewan. Government officials confirmed that this is the first kilogram of lithium ever mined in the region, a development that coincides with the announcement of two new critical minerals incentive programs worth $500 million. These programs are aimed at further advancing Canada’s position in the global critical minerals sector, especially as the demand for battery-grade materials continues to grow.
The lithium carbonate was produced through direct lithium extraction (DLE) technology. The DLE eluent, a concentrated lithium solution, was generated by the ILiad pilot that operated at the Prairie project from November 2023 to February 2024. This solution was then sent to Saltworks Technology’s facility in British Columbia, where it was processed into battery-grade lithium carbonate, a critical component in the production of lithium-ion batteries used in electric vehicles and renewable energy storage systems.
Paul Lloyd, managing director of Arizona Lithium, expressed the importance of this achievement. “Producing battery-grade lithium carbonate from our flowsheet is an important step in showing the market the quality of the product that we can produce,” Lloyd said in a recent press release. He added that the quantity of battery-grade product produced is sufficient to distribute to all of the company’s offtakers and strategic partners. This indicates Arizona Lithium’s readiness to meet the growing demand for high-purity lithium in the global market.
The Prairie project, located in the Williston Basin of Saskatchewan, is known for its large brine resource, historically tied to the region’s oil production. The project’s resource is estimated to contain 6.3 million tonnes of lithium carbonate equivalent (LCE), with 4.8 million tonnes classified as indicated and 1.5 million tonnes as inferred. This substantial resource base positions the Prairie project as a key player in the North American lithium supply chain, which is crucial as the continent looks to reduce its reliance on foreign sources of critical minerals.
According to a preliminary feasibility study conducted in December 2023, the Prairie project is expected to have a mine life of 20 years. During this period, the project is anticipated to produce an average of 6,000 tonnes of LCE per year. The financial outlook for the project is strong, with an after-tax net present value estimated at $312 million, based on an 8% discount rate. The internal rate of return is projected at 20.4%, with a payback period of just 2.2 years, reflecting the project’s potential to generate significant returns on investment.
The lithium-rich brine at the Prairie project is accessed using conventional oil and gas drilling methods, reaching aquifers located approximately 2.3 kilometers underground. Once the brine is extracted, DLE technology is employed to separate the lithium from the brine, resulting in a concentrated lithium solution. This concentrate is then processed on-site to produce high-purity battery-grade lithium carbonate, which is essential for the production of advanced lithium-ion batteries.
Production drilling at the Prairie project began in May 2024, marking the start of the first phase of development. The initial drilling focused on three independent pads, each designed with a target annual production of 2,000 tonnes of LCE. Two of these pads have already been constructed, and the first commercial production well was successfully drilled on Pad #1. This well is expected to be a key contributor to the project’s early production phase.
Arizona Lithium is now focused on bringing Pad #1 into full production by 2025. The company is also advancing its other core asset, the Big Sandy lithium project in Arizona. The Big Sandy project, which is 100% owned by Arizona Lithium, represents another significant opportunity for the company to expand its lithium production capabilities and meet the growing demand for lithium in the United States and beyond.
