Alberta-based lithium miner E3 Metals (TSXV: ETMC) announced on Wednesday that it has entered into a collaboration with Livent Corporation (NYSE: LTHM), whereby the two companies will seek to advance the development of E3 Metals’ proprietary direct lithium extraction process.
E3 Metals is close to commercializing a low-cost method of recovering lithium from the petro-brine resources in the Leduc Formation of Alberta. Its extraction process is better than existing methods, according to the company, because it concentrates and purifies the petro-brine feedstock in a single step.
Under the agreement, Livent will contribute its technical expertise and invest up to $5.5 million in the joint development project. In exchange, upon completion of the project and satisfaction of the full $5.5 million in funding, Livent may convert its investment into a 19.9% ownership stake in E3 Metals and appoint one member to its board of directors.
“Livent has been a pioneer in the lithium industry for over 60 years. Collaborating with E3 Metals provides an opportunity to build on our rich heritage of innovation and to bring exciting new possibilities to our customers around the world,” Paul Graves, President & CEO of Livent, commented.
E3 Metals currently holds the sixth largest lithium resource in the world. Its Leduc Reservoir hosts lithium enriched brine with 6.7 million tonnes LCE inferred mineral resource delineated to date.