OLDS, Alta. — Alberta obtained out of the beginning gates within the world essential minerals race Thursday with the opening of the province’s first lithium extraction pilot mission.
At his firm’s web site simply east of the city of Olds in central Alberta, E3 Lithium CEO Chris Doornbos known as the event the beginning of a “new period” for the province’s historically oil-and-gas-dominated economic system.
“With out forsaking our previous, the lithium trade opens up an entire new trade, utilizing our current ability set,” Doornbos mentioned.
“The chance to be a world chief, and to make Alberta a lithium jurisdiction, is basically and actually right here.”
Lithium, a lightweight steel, is in demand across the globe proper now as a result of it’s a key part in electrical automobile batteries.
At present, the world’s largest lithium producers are Australia, Chile and China. Nevertheless, it has lengthy been recognized that Alberta is residence to one of many world’s largest lithium deposits, situated deep underground within the Leduc geological formation, which can be a serious oil-and-gas producing space.
Till just lately, there was little curiosity in growing this layer, however the progress in electrical autos and exponential demand for lithium-ion batteries has modified that. Lithium is now a key focus of the federal government of Canada’s $3.8-billion, eight-year essential minerals technique, which goals to extend home extraction and manufacturing of the steel together with different beforehand under-developed sources corresponding to cobalt, copper, titanium and zinc.
MADE-IN-ALBERTA TECHNOLOGY
E3, a publicly traded junior useful resource firm headquartered in Calgary, has rapidly turn out to be a pacesetter within the area. It holds the mineral rights to an estimated 16 million tonnes of lithium useful resource, and it has developed a made-in-Alberta expertise that extracts the lithium that happens naturally inside oilfield brines.
The corporate plans to pilot its expertise over the course of this fall, with the objective of opening a full-scale business plant in the identical space by late 2026.
That facility might course of as much as 150,000 tonnes per 12 months of battery-grade lithium product, Doornbos mentioned, able to be bought on to battery producers and EV firms.
Whereas Alberta’s lithium trade continues to be in its infancy, proponents say it is a pure match for the province. Its lithium useful resource is situated in the identical oilfield formation as Leduc No. 1, the historic gusher that kick-started the province’s oil-and-gas trade in 1947.
And the extraction course of for lithium is just not that technically completely different from oil and gasoline extraction, which means the province’s oil-and-gas engineers and geologists “essentially perceive” what it is all about, Doornbos mentioned.
OIL & GAS ‘CLOSELY WATCHING’
In truth, Doornbos mentioned he expects to see conventional oil-and-gas firms more and more seeking to lithium as one other potential income supply. Imperial Oil Ltd., for instance, is already one in all E3’s traders, and U.S. oil large Exxon Mobil is growing its personal lithium mission in Arkansas.
“I believe the oil and gasoline firms are very intently watching the lithium area,” Doornbos mentioned.
“I might see them partnering (with lithium firms), however I might additionally see them, as Exxon is already doing, doing it themselves and making a enterprise unit and making lithium.”
Whereas E3 is the primary lithium firm to get an extraction mission up and working in Alberta, there are a handful of others with tasks nonetheless within the planning phases.
Brian Jean, Alberta’s Minister of Power and Minerals, mentioned his authorities desires to see the province turn out to be a “most well-liked producer and provider” of commercial minerals and important metals.
‘INCREASED GLOBAL DEMAND’
“Elevated world demand for electrical autos and battery storage are going to result in Alberta having one other useful resource — not simply oil, not simply pure gasoline — however one other useful resource to promote to the world,” he mentioned.
Each the Alberta and federal governments have offered funding to E3 Lithium, and the federal authorities has additionally introduced the creation of a 30 per cent tax credit score for essential mineral exploration tasks.
The federal authorities has additionally introduced lots of of hundreds of thousands in authorities subsidies in an effort to draw battery manufacturing and EV manufacturing to Canada. (One instance is the federally backed electrical automobile battery plant that’s at present below development by Stellantis close to Windsor, Ont.)
Doornbos mentioned Canada will should be “extraordinarily aggressive” if it needs to compete with the US on electrical automobile and battery manufacturing going ahead. He mentioned the incentives and subsidies that nation is allotting to assist the build-out of an American EV provide chain have put it forward of the sport.
However he mentioned with regards to the pure sources themselves, he is assured Canada, and Alberta specifically, can win.
“The essential minerals trade will construct off the oil and gasoline trade we’re so well-known for,” Doornbos mentioned.
“I believe from the broader Alberta perspective, it should be much more than simply E3. It (essential minerals) goes to be an trade to itself.”