Phase 1 Production in Saskatchewan by Q4 2026
Prairie Lithium Limited has commenced Factory Acceptance Testing on North America’s largest Direct Lithium Extraction (DLE) unit. The company plans to deploy it at their Saskatchewan project by the fourth quarter of 2026.
This unit, featuring four commercial-scale columns, is set to be transported to Saskatchewan after successful testing. Prairie Lithium considers this project a significant advancement in its scalable development model.
The company has secured a binding offtake agreement with Hydro Lithium of South Korea. This agreement covers 100% of Phase 1 production, equivalent to 150 tonnes per annum of lithium carbonate equivalent. In addition, Hydro Lithium will provide A$10 million in refining equipment to the site.
Paul Lloyd, Managing Director of Prairie Lithium, stated, “Commencing Factory Acceptance Testing of our commercial-scale DLE unit is a critical milestone for Prairie Lithium as we move closer to installation, commissioning, and first production in Saskatchewan.”
Project Development and Future Plans
Following the testing phase, Prairie Lithium aims to complete facility construction and integrate the commercial-scale processing equipment. The company will continue to optimise the DLE unit’s performance, focusing on lithium recovery and contaminant rejection.
Deployment of this unit is expected to validate Prairie Lithium’s scalable development approach. Future expansion will be considered through a repeatable pad-by-pad strategy. The company plans to evaluate further opportunities for growth post-commissioning.
Commissioning of the DLE unit is targeted for the fourth quarter of 2026. Initial production is anticipated to generate revenue through the existing agreement with Hydro Lithium.
Prairie Lithium’s strategy includes leveraging the success of Standard Lithium’s single DLE column in Arkansas by operating at four times the scale in Saskatchewan. The involvement of Hydro Lithium with proprietary refining equipment significantly reduces upfront capital requirements, supporting Prairie’s lower capital development model.
The project marks a significant milestone in validating a scalable development model before potential expansion. The company views this as a major step forward in its efforts to establish commercial-scale proof of concept.
