COLUMN: Alberta Is Poised to Become the Next Lithium Giant, and No One Sees It Coming

Comparison with Traditional Methods

Ehsan Vahidi, an assistant professor of extractive metallurgy at the University of Nevada, Reno, has published a fascinating comparative study. His team analyzed the carbon emissions, land use, and water consumption of the three main methods of lithium extraction. The results are clear-cut. Hard-rock mining in Australia generates enormous emissions, largely because the material is shipped to China for processing, and China relies heavily on coal. Evaporation ponds in Chile use between 350 and 600 square meters per metric ton of lithium carbonate, compared to just 16 square meters for DLE technology.

Water, That Precious Resource

Here’s the key detail that makes all the difference: DLE allows nearly all the water to be reinjected into the ground after lithium extraction. Nearly all of it. In regions like Chile’s Atacama Desert, lithium extraction is often called “water extraction” because it consumes astronomical amounts of this vital resource in an already arid environment. In Alberta, this problem disappears. Water circulates; it isn’t wasted. Vahidi is adamant: if you have a reliable and sustainable power generation system, DLE is one of the best ways to extract lithium from the ground.

Water. Always water. We talk so much about carbon that we sometimes forget that water will be the real challenge of the 21st century. When I read that the DLE recycles almost all the water it uses, I tell myself that we might be onto something important here. Not perfect—far from it. But important. Because saving the planet by drying up entire communities isn’t really saving the planet, is it?

A province still dependent on fossil fuels

There’s a catch. A big one. Alberta still generates most of its electricity from natural gas. And DLE technology consumes a lot of energy to pump and treat thousands of liters of brine. If that energy comes from fossil fuels, the environmental benefit is partially negated. Vahidi makes this clear in his study: energy-related emissions are the main environmental impact of DLE. The solution? Use renewable energy sources like solar power. And as it happens, Alberta is becoming a major hub for solar energy development. The irony continues.

The Inevitable Trade-off

Vahidi uses a phrase that perfectly sums up the situation: “Everything about lithium is a matter of compromise. You lose something, you gain something else.” We reduce land use, but we increase energy consumption. We conserve water, but we rely on electricity. There is no perfect solution. There never has been. The question isn’t about finding perfection, but about choosing the least harmful compromise. And if Alberta manages to power its DLE operations with solar energy, that compromise suddenly becomes very appealing.

Compromises. Always compromises. I wish I could tell you that there’s a miracle solution—a technology that solves all problems without creating new ones. But that would be lying to you. The truth is that every choice comes at a cost. Every advance has its downside. And perhaps that’s what maturity is all about: accepting that progress isn’t a straight line toward perfection, but a constant zigzag between different kinds of imperfections. The important thing is to zigzag in the right direction.

Mind-boggling numbers

Let’s talk numbers. According to the International Energy Agency, global demand for lithium is expected to increase eightfold by 2040, reaching 1.3 million metric tons. Eight times. Let that number sink in. Electric vehicles account for the largest share of this demand, but energy storage for solar- and wind-powered electrical grids also plays a crucial role. In 2024, more than 17 million electric vehicles were sold worldwide, a 25 percent increase from 2023. In North America, sales rose by 9 percent. And this is just the beginning.

Canada Lags Behind

Currently, Canada produces only 6,000 metric tons of lithium per year, sourced from two mines in Manitoba and Quebec, both of which use hard-rock mining. Compare that to Australia’s 88,000 metric tons. Canada is a dwarf in a world of giants. But Alberta could change that equation. E3 Lithium estimates that the Bashaw District in central Alberta contains 16.2 million metric tons of lithium carbonate equivalent in measured and indicated resources. With a potential output of 200,000 metric tons of battery-grade lithium per year for 50 years, Alberta could become a major player.

200,000 metric tons per year for 50 years. Try to imagine that. Try to imagine what that means for a province, for a country. Canada could go from a bit player to a leading role in the history of lithium. And you know what strikes me the most? It’s that all of this is happening right now. Not in 20 years. Right now. The decisions being made today in offices in Calgary will determine whether Canada misses or seizes this historic opportunity. It gives me cold sweats and hope at the same time.

E3 Lithium and its Clearwater Project

E3 Lithium isn’t messing around. The company has submitted its environmental permit applications and plans to have a fully authorized central processing facility in place by mid-2026. Its Clearwater project will be developed in three phases of 12,000 metric tons per year each, for a total capacity of 36,000 metric tons of lithium carbonate per year. Chris Doornbos, CEO of E3 Lithium, is confident: “We are on track to have a project ready to launch in 2026.” The company is currently building a fully integrated demonstration facility that is expected to come online in early Q3 2025. This facility will prove that DLE technology can produce battery-grade lithium on a commercial scale.

LithiumBank and the Reuse of Infrastructure

LithiumBank is taking a similar approach but with a particular focus on reusing existing infrastructure. The company holds licenses for two lithium projects in Alberta and is using wells built decades ago for oil and gas extraction. In 2024, LithiumBank tested its technology on a pilot scale and claims to have successfully extracted battery-grade lithium. The company is now working on a more detailed feasibility study. Kevin Piepgrass emphasizes Alberta’s unique advantage: “It’s an incredible opportunity to produce lithium in a region that has everything you need.”

These companies fascinate me. Not because they’re perfect or altruistic, but because they embody something rare: the courage to bet on the future. They’re investing millions in a technology that hasn’t yet proven itself on a commercial scale. They’re taking enormous risks. And yes, they’re doing it for the money. But along the way, they might also help solve one of the greatest challenges of our time. I don’t know if they’ll succeed. No one does. But at least they’re trying.

A Regulatory Environment Conducive to Development

Alberta has an advantage that few regions can claim: a mature and effective regulatory framework for resource development. Nearly 80 years of oil and gas extraction have created a streamlined and transparent permitting system. The new Mineral Resources Development Act and the associated rules on brine-hosted mineral development establish a clear approval process. Historically, the review process takes less than 12 months. E3 Lithium aims to submit its permit applications by the start of the third quarter of 2025, which could lead to a fully permitted facility by mid-2026.

Challenges Ahead

It’s not all smooth sailing. Enhance Energy Inc. has filed an application to inject CO2 into the Leduc Formation in the Bashaw District—exactly where the lithium resources are located. E3 Lithium and up to 35 mineral rights holders have filed objections. The conflict is clear: the minerals contained in the brines can create significant value for Alberta taxpayers, and the conservation of Alberta’s resources is of paramount importance. E3 proposes a simple solution: the co-production of lithium followed by CO₂ injection, or the disposal of CO₂ into one of the many aquifers that contain no mineral value.

This is the kind of conflict that drives me crazy. On one side, a company that wants to store CO2 to combat climate change. On the other, companies that want to extract lithium to fuel the energy transition. Both are necessary. Both are important. And yet, they’re fighting over the same underground space. It would be almost comical if it weren’t so tragic. We need solutions, not turf wars. I sincerely hope they’ll find a compromise, because losing either one would be a defeat for all of us.

Security of Supply for Critical Minerals

Lithium isn’t just an economic issue. It’s a matter of national security. Currently, China dominates the global lithium supply chain, controlling a large portion of refining and processing. Australia produces the ore but sends it to China for processing. This dependence is a cause for concern among Western governments. Canada, with its vast lithium resources and political stability, could become a reliable supplier to North America and Europe. E3 Lithium explicitly positions its Clearwater project as a secure source of lithium for Canada, the United States, the European Union, and Asia.

Government Support

Governments have recognized this. E3 Lithium has received substantial financial support from several government agencies: $5 million from Emissions Reduction Alberta, $3.55 million from Natural Resources Canada, $27 million from the Strategic Innovation Fund, and $1.8 million from Alberta Innovates. This non-dilutive funding underscores the project’s importance to Canada’s critical minerals sector. LithiumBank also benefits from government grants. The message is clear: Canada wants to be a major player in the global lithium supply chain.

When I see these figures—these tens of millions invested by governments—I find myself thinking that we may be living through a historic moment without even realizing it. Just like the people who lived at the dawn of the Industrial Revolution without knowing they were witnessing a turning point in history. Lithium could be the oil of the 21st century. And Canada, for once, has the chance to be ahead of the curve rather than behind it. It makes me want to believe in it. Really.

Commercial viability yet to be proven

Let’s be honest. DLE technology has not yet been proven on a commercial scale. Lab tests and pilot plants are one thing. Producing thousands of metric tons of battery-grade lithium in a cost-effective and sustainable manner is quite another. Ngai Yin Yip, a professor of earth and environmental engineering at Columbia University, has just published a study on a new solvent capable of extracting lithium from brine. But so far, this has only been demonstrated in the lab. The challenge of making DLE technology work on a large scale remains.

The Volatility of Lithium Prices

The lithium market has been on a roller coaster ride in recent years. Prices skyrocketed in 2022, then plummeted in 2023 and 2024. This volatility makes long-term planning and financing costly projects difficult. However, market analysts predict that demand for lithium will remain strong through the end of the decade and beyond. The electric vehicle industry continues to grow, and battery energy storage is becoming crucial for electricity grids powered by renewable energy. The lithium-ion battery segment dominates this market, accounting for approximately 90 percent of the market share in 2024.

Volatility. That word that sends shivers down investors’ spines—and that should give us all pause for thought. Because behind these price fluctuations lie jobs, communities, and projects that stand to live or die. I can’t help but think of all those Albertans who’ve seen the oil industry rise and fall like a yo-yo. Will they go through the same thing again with lithium? I hope not. I really hope that this time, we’ve learned something.

Alberta at a Historic Turning Point

Alberta is at a pivotal moment in its history. The province, which built its prosperity on oil, could become a global leader in sustainable lithium extraction. DLE technology offers a promising path, with a significantly reduced environmental impact compared to traditional methods. The resources are there, buried in underground brine. The infrastructure is in place, a legacy of decades of oil extraction. The skilled workforce is ready to apply its expertise. The regulatory framework is mature and effective. And now, pioneering companies like E3 Lithium and LithiumBank are poised to prove that all of this can work on a commercial scale.

The coming years will be decisive

The demonstration facilities set to come online in 2025 and 2026 will determine whether Alberta can truly become a major player in the global lithium market. If DLE technology performs as expected, if permits are obtained, and if funding is secured, then we could witness the birth of a new industry that will transform the economy of Western Canada. Global demand for lithium will only continue to rise. Electric vehicles are becoming more widespread. Energy storage is becoming essential. The time has come. The question is no longer whether Alberta’s lithium will be mined, but when and by whom.

I end this column with a strange feeling—a mix of hope and apprehension. Hope because I see a real possibility of doing things differently, better. Apprehension because I know how easy it is to squander an opportunity. Alberta has a chance to show the world that we can extract resources more responsibly. That we can create wealth without destroying the environment. That we can transform a fossil-fuel economy into a green economy. But that takes courage. Vision. Perseverance. Do we have them? I want to believe we do. I have to believe we do. Because the alternative is too depressing to even consider.

Signed, Jacques Provost