Alberta took a significant step into the global critical minerals arena with the inauguration of its first lithium extraction pilot project. CEO Chris Doornbos of E3 Lithium, located just east of Olds in central Alberta, hailed the occasion as the dawn of a “new era” for a province traditionally dominated by the oil and gas industry. This development positions Alberta to become a prominent player in the lithium sector, a mineral currently in high demand due to its crucial role in electric vehicle (EV) batteries.
While Australia, Chile, and China are currently the world’s leading lithium producers, Alberta possesses one of the world’s largest lithium deposits, situated deep underground in the Leduc geological formation—a region known for its significant oil and gas production. Historically, there has been limited interest in developing this resource. However, the surge in electric vehicles and the skyrocketing demand for lithium-ion batteries have shifted the focus to harnessing this valuable asset.
Lithium now stands as a central component of Canada’s $3.8-billion, eight-year critical minerals strategy, which aims to enhance domestic extraction and production of lithium, along with other previously underexplored resources such as cobalt, copper, titanium, and zinc.
E3 Lithium, a publicly traded junior resource company headquartered in Calgary, is at the forefront of this burgeoning industry. The company holds mineral rights to approximately 16 million tonnes of lithium resources and has devised an Alberta-made technology to extract lithium naturally present in oilfield brines. They plan to pilot this technology in the coming fall, with aspirations of launching a full-scale commercial plant in the same vicinity by late 2026. This facility could process up to 150,000 tonnes per year of battery-grade lithium, poised for direct sale to battery manufacturers and EV companies.
Alberta’s lithium industry is in its infancy, but proponents assert that it aligns seamlessly with the province’s strengths. The lithium resource resides within the same oilfield formation as Leduc No. 1, the historic oil well that catalyzed Alberta’s oil and gas industry in 1947. Moreover, the extraction process for lithium shares similarities with oil and gas extraction, allowing the province’s engineers and geologists to readily grasp the fundamentals.
E3 has attracted investment from traditional oil and gas companies, such as Imperial Oil Ltd., and even oil giant Exxon Mobil is venturing into lithium projects in the US.
While E3 stands as the first lithium company to launch an extraction project in Alberta, several others are in the planning stages. Alberta’s Minister of Energy and Minerals, Brian Jean, envisions the province as a “preferred producer and supplier” of industrial minerals and critical metals. He foresees Alberta diversifying its resources to capitalize on the growing global demand for electric vehicles and battery storage.
Both the Alberta and federal governments have provided funding to E3 Lithium, and the federal government introduced a 30 percent tax credit for critical mineral exploration projects. Additionally, Canada has unveiled substantial government subsidies to attract battery production and EV manufacturing, positioning itself to compete with the United States in this rapidly evolving industry.
Doornbos believes that Canada, particularly Alberta, can leverage its abundant natural resources to thrive in the critical minerals sector, building upon its renowned reputation in the oil and gas industry. He anticipates that the critical minerals industry will evolve into a substantial sector in its own right, shaping the province’s economic landscape beyond E3’s endeavors.
