The pilot, which will support E3 Lithium’s Clearwater project aims to draw lithium from under a historic oil field

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The lithium pilot project aims to draw lithium from the historic Leduc oil field. (Credit: Khusen Rustamov from Pixabay)

Imperial Oil and E3 Lithium are joining forces for a lithium pilot project in Alberta, Canada, which involves exploring the possibility of extracting lithium from the historic Leduc oil field.

The pilot, which will support the Clearwater project of E3 Lithium will draw lithium from under the field.

Leduc is a historic discovery of Imperial Oil, which is said to have led to major oil and gas development in Western Canada.

According to E3 Lithium, its proprietary technology can help in extracting the critical mineral from the lithium-rich brine, which can be used potentially in the commercial development of battery-grade products.

E3 Lithium CEO Chris Doornbos said: “Leduc No.1, Imperial’s first well into this reservoir, was one of Imperial’s most prolific oil discoveries in Alberta and transformed the provincial and Canadian economies, much like lithium has the potential to do.

“Having Imperial now working with E3 Lithium in exploring the redevelopment of Leduc into a world-class source of lithium is an exciting new chapter in Alberta and Canada’s story.”

The lithium pilot project calls for the drilling of lithium evaluation wells. The drilling is expected to be wrapped up by the end of Q3 2022.

E3 Lithium said that the partnership will also focus on scaling up its technology, which brings the brine liquid to the surface from which lithium is taken off and concentrated. The liquid is returned immediately underground as part of a closed-loop system.

As per the preliminary economic assessment (PEA) of the company, the first phase of development is estimated to yield nearly 20,000 tonnes of lithium hydroxide per annum.

Under the agreement signed by the parties, Imperial Oil will invest C$6.35m ($4.9m) in E3 Lithium at a pre-paid price of C$1.86 ($1.44)/warrant and the issuance of 3.41 million warrants.

Imperial Oil will also give technical and development support to E3 Lithium for the lithium pilot project.

Imperial Oil commercial business development director Jason Iwanika said: “This exciting collaboration brings together Imperial’s long-standing commitment to research and technology to help test and scale E3’s lithium-recovery technology.

“We continue to advance the innovation and technologies needed to support the energy transition, working in collaboration with governments and industry to progress new opportunities from existing assets and sector expertise.”