Arizona Lithium Celebrates Production of First Battery-Grade LCE Kilogram in Saskatchewa

Arizona Lithium (ASX: AZL) has reached a significant milestone with the production of its first battery-grade lithium carbonate at the Prairie project in Saskatchewan. This achievement marks the first-ever kilogram of lithium produced in the Canadian province, as confirmed by government officials during an announcement that introduced two new critical minerals incentive programs totaling $500 million.

The battery-grade lithium carbonate was produced using direct lithium extraction (DLE) technology, specifically from the DLE eluent of the ILiad pilot, which operated at the Prairie project between November 2023 and February 2024. The DLE eluent was then sent to Saltworks Technology’s facility in British Columbia, where it was processed and refined into the battery-grade material. Saltworks Technology, based in Vancouver, specializes in wastewater treatment and lithium refinement, ensuring the quality of the final product.

In a press release, Arizona Lithium’s managing director Paul Lloyd emphasized the importance of this achievement, stating, “Producing battery-grade lithium carbonate from our flowsheet is an important step in showing the market the quality of the product we can produce.” He further highlighted that the battery-grade material is now available in sufficient quantities to be distributed to all of the company's offtakers and strategic partners.

The Prairie project is located in the heart of Saskatchewan’s Williston Basin, a region historically known for its oil production. The project is home to a significant brine resource, estimated at 6.3 million tonnes of lithium carbonate equivalent (LCE), with 4.8 million tonnes indicated and 1.5 million tonnes inferred. According to a preliminary feasibility study conducted in December 2023, the Prairie project is expected to have a 20-year mine life, with an average annual production of 6,000 tonnes of LCE. The project’s after-tax net present value (NPV), calculated at an 8% discount rate, is estimated at $312 million, with an internal rate of return (IRR) of 20.4% and a payback period of 2.2 years.

The Prairie project employs conventional oil and gas drilling methods to access lithium-rich brine from aquifers located approximately 2.3 kilometers underground. DLE technology is used to extract lithium from the brine, and the lithium concentrate is then upgraded onsite to produce high-purity material. The first phase of production drilling began in May 2024, with three independent pads planned, each targeting an annual production of 2,000 tonnes of LCE. Two of these pads have already been constructed, and the first commercial production well has been drilled on Pad #1.

Looking ahead, Arizona Lithium aims to bring Pad #1 at the Prairie project into production by 2025, while also advancing its other core asset, the 100%-owned Big Sandy lithium project in Arizona.