Prairie Lithium receives C$6.3m Canadian federal funding

The Canadian government has approved C$6.3 million in financing for Prairie Lithium to support its project in Saskatchewan. The funding is provided through the Business Scale-up and Productivity (BSP) program, administered by PrairiesCan, and features interest-free repayments beginning in 2029.

The investment will facilitate Phase 1 production, including the procurement and installation of balance-of-plant systems and processing equipment required for a commercial-scale direct lithium extraction (DLE) plant. Prairie Lithium aims to become the first commercial-scale Canadian producer of lithium from oilfield brine.

Lithium brine production from the company’s first commercial well is expected to commence in the fourth quarter of 2026. Phase 1 targets an annual production of 150 tonnes of lithium carbonate equivalent in the form of lithium chloride, which is tied to an offtake agreement with Hydro Lithium.