E3 Lithium (TSX-V:ETL) has entered a non-binding memorandum of understanding (MoU) with Epsilon CAM for the potential supply of battery-grade lithium carbonate from its Clearwater Project in Alberta, Canada.
Effective 1 September 2026, the MoU contemplates supply of up to 5,000 tonnes per year of battery-grade lithium carbonate over five years. The volume represents up to 40% of E3 Lithium’s proposed stage-one production of 12,000 tonnes per year from Clearwater.
Epsilon CAM develops and manufactures lithium iron phosphate cathode active materials for lithium-ion batteries. The company is building a 30,000-tonne-per-year cathode materials facility in India, with phase-one completion scheduled for early 2028.
“This MOU with Epsilon demonstrates a serious interest and draws a clear path from Alberta brine directly into the battery supply chain,” CEO Chris Doornbos says.
“The electric mobility growth requires a battery materials supply chain that is resilient, diversified and globally connected,” Epsilon CAM Managing Director Vikram Handa says.
E3 Lithium expects agreements to finalise as Clearwater advances toward final investment decision, tied to permitting, its demonstration facility, and completion of its feasibility study.
The company holds 21.2 million tonnes (Mt) of lithium carbonate equivalent measured and indicated mineral resources in Alberta, including 16.2Mt at Clearwater.
The Clearwater Prefeasibility Study outlined a pre-tax net present value of US$5.2 billion ($7.3 billion) with a 29.2% internal rate of return.
E3 Lithium is a Canadian developer using direct lithium extraction technology to produce battery-grade lithium from brine resources across Alberta’s Bashaw District.
Write to JC Villarba at Mining.com.au
Images: Unsplash
