Calgary-based E3 Lithium has been conditionally approved for up to $36.5 million in non-repayable federal funding to accelerate development of its Clearwater Project in Alberta.
The investment, provided through the Government of Canada’s Global Partnerships Initiative (GPI), will support 75% of a $48 million program to complete Phase 3 of E3’s Demonstration Facility and advance the project’s Feasibility Study.
Located east of Olds, the Phase 3 Demonstration Facility will feature a full-sized commercial Direct Lithium Extraction (DLE) column designed to produce the carbonate equivalent of 100 tonnes per year of lithium chloride. The funding will also advance Front End Engineering Design (FEED) work and support the hiring of 25 additional full-time staff.
For Alberta’s emerging lithium sector, the announcement represents more than capital — it signals federal confidence in the province’s role in securing critical mineral supply chains tied to batteries, EVs, and defence technologies.
“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 is positioning its Direct Lithium Extraction technology as a lower-footprint alternative to traditional hard rock or brine evaporation methods, aiming to produce battery-grade lithium carbonate at commercial scale. Phase 3 is intended to de-risk the process at a 1:1 commercial column scale and enable a Final Investment Decision supported by a Class 3 cost estimate.
President and CEO Chris Doornbos said the funding moves the company closer to becoming one of Canada’s first commercial lithium producers.
The project is being developed in collaboration with France-based Axens Group and Switzerland-headquartered ABB, underscoring the international partnerships supporting Alberta’s lithium ambitions.
The funding remains conditional on due diligence and execution of a contribution agreement.
If completed as planned, Clearwater would mark a significant milestone in Alberta’s evolution from oil and gas powerhouse to diversified critical minerals and advanced energy hub.
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