Canada is deepening its commitment to domestic critical mineral production, with E3 Lithium conditionally approved for up to $36.5 million in non-repayable funding to accelerate its Clearwater Project in Alberta.
The funding, delivered through the Government of Canada’s Global Partnerships Initiative, will support 75% of a $48 million program to complete Phase 3 of E3’s Demonstration Facility and advance its Feasibility Study toward a Final Investment Decision.
Phase 3 will include a full-scale commercial Direct Lithium Extraction (DLE) column capable of producing the carbonate equivalent of 100 tonnes per year of lithium chloride. The goal is to de-risk the technology at commercial scale and advance Front End Engineering Design (FEED) work, while expanding E3’s technical workforce by 25 full-time roles.
Lithium is a foundational material in EV batteries, grid-scale storage, and defence technologies. Ottawa’s support reflects growing urgency to establish secure supply chains among allied nations.
“Canada is putting real capital behind the secure and reliable critical mineral supply chains that our economies and defence industries rely on,” said Tim Hodgson, Minister of Energy and Natural Resources.
E3’s DLE approach aims to extract lithium from Alberta brines with a potentially smaller environmental footprint than traditional evaporation ponds or hard rock mining. By demonstrating battery-grade lithium carbonate production at increasing scale, the company is seeking to position Clearwater as one of Canada’s first commercial lithium projects.
CEO Chris Doornbos described the funding as a catalyst to move rapidly toward commercial production while supporting energy security and economic growth.
The project is being developed in collaboration with Axens Group and ABB, linking Canadian resource development with European clean energy and automation expertise.
The funding remains subject to due diligence and a finalized contribution agreement.
As global demand for lithium accelerates, the Clearwater Project represents a pivotal test of Canada’s ability to translate critical mineral policy into commercial production — and to anchor more of the battery value chain at home.