Arizona Lithium gets green light for Saskatchewan’s first lithium brine project

Staff Writer | May 19, 2025 | 8:34 am Battery Metals Canada Lithium

Prairie is the first lithium brine project in Saskatchewan to receive production approval. (Image: Arizona Lithium)

Arizona Lithium (ASX: AZL) has received approval to start stage one production at its Prairie lithium brine project in Saskatchewan, the province’s first.

The green light, granted by the provincial Ministry of Energy and Resources, paves the way for commercial-scale production using direct lithium extraction (DLE) for 150 tonnes a year of lithium carbonate equivalent (LCE).

Shares in Arizona Lithium have fallen 40% this year to Ao.6¢ apiece in Sydney, reflecting multiple capital raisings and share dilution to some 4.5 billion outstanding. The company’s market capitalization is A$27 million. The downturn aligns with broader challenges in the lithium sector, including declining lithium prices and investor caution towards early-stage companies.

LCE prices tanked 86% to less than $10,000 per tonne this year from nearly $80,000 per tonne in late 2022 on oversupply and weaker demand from electric vehicle makers.

The project, located in the Williston Basin of Saskatchewan, uses conventional oil and gas drilling and well completion methods to access lithium-rich brine from aquifers about 2.3 km underground.

Brine momentum

The approval comes as momentum builds for lithium brine projects on the Prairies. EMP Metals (CSE: EMPS) is also advancing a lithium brine project in Saskatchewan, along with E3 Lithium (TSXV: ETL) and Volt Lithium (TSXV: VLT) in neighbouring Alberta.

Prairie’s indicated resource has increased to 4.6 million tonnes from 4.5 million tonnes of LCE, according to an updated resource model based on data gathered last year. The indicated resource that can be produced per year has surged 120% to 17,000 tonnes LCE from 7,700 tonnes, it said.

Southeast Saskatchewan is home to the highest-grade lithium brines in Canada. The project has reported average lithium concentrations of 98 milligrams per litre across its resource base, with some wells yielding concentrations up to 259 mg/L – the highest ever recorded in Canada.

Arizona Lithium is also advancing its Big Sandy lithium project in Arizona.