E3 Lithium and Pure Lithium achieve breakthrough in Phase 1 Lithium metal battery collaboration

E3 Lithium Ltd. and Pure Lithium Corporation have released promising initial results from Phase 1 of their lithium metal battery joint development agreement. At the heart of this collaboration is a significant advancement: the successful use of lithium chloride concentrate extracted from E3 Lithium’s Alberta brines to manufacture pure lithium metal anodes for high-performance batteries. These tests mark a pivotal validation of both E3’s direct lithium extraction (DLE) technology and Pure Lithium’s Brine to Battery™ innovation.

The announcement confirms that batteries assembled using E3’s lithium metal anodes achieved over 500 full charge-discharge cycles while maintaining 80% capacity. With lithium purity exceeding 99.9% and one-hour charge/discharge performance at 1C:1D ratios, the trial meets key performance benchmarks for electric vehicle and grid storage applications. This phase was a litmus test for compatibility, cost-efficiency, and scalability of brine-based lithium in next-generation battery chemistries.

The joint development is a significant step toward establishing a vertically integrated and localized lithium battery supply chain in North America, particularly beneficial for decarbonisation strategies, energy security, and reshoring clean technology production.

What Technologies Are Being Used to Transform Alberta’s Lithium Brines?

At the centre of the collaboration is E3 Lithium’s proprietary DLE process, which efficiently extracts lithium from brines in Alberta’s Leduc Formation. These concentrated lithium chloride streams—sourced from various stages of E3’s Clearwater commercial flowsheet—were processed at Pure Lithium’s Boston facility. The lithium was then electrodeposited onto copper to produce battery-grade lithium metal anodes, forming the critical component of Pure Lithium’s vanadium oxide-based lithium metal battery.

Unlike conventional lithium-ion cells, Pure Lithium’s batteries exclude graphite, cobalt, nickel, and manganese—materials often associated with high cost and geopolitical supply chain risks. The innovation lies not only in the materials used but in the process integration. By combining lithium extraction and battery manufacturing in one continuous chain, the companies aim to disrupt the fragmented lithium battery production model and drive down costs at scale.

Emilie Bodoin, Founder and CEO of Pure Lithium, underscored the strategic impact of this work by stating that rigorous electrochemical testing across more than 100 battery cells demonstrated consistently strong results, validating the technology’s commercial potential.

How Does This Fit into E3 Lithium’s Broader Development Strategy?

For E3 Lithium, this milestone is aligned with its overarching ambition to transition from exploration-stage resource holder to a supplier of high-purity, battery-grade lithium products. With 16.2 million tonnes of lithium carbonate equivalent (LCE) in Measured and Indicated categories and a further 3.4 million tonnes in Inferred resources across Alberta and Saskatchewan, E3 commands one of the most significant lithium resource portfolios in North America.

The company’s Clearwater Project, which recently released a NI 43-101 Pre-Feasibility Study (PFS), supports a reserve of 1.13 million tonnes LCE with a pre-tax NPV8% of USD 5.2 billion and an IRR of 29.2%. After-tax, the project shows a solid NPV8% of USD 3.7 billion and a 24.6% IRR. These figures are based on projected production volumes, capex structures, and current lithium price forecasts. The integration of battery-ready anode technology into its commercial roadmap could further improve downstream margins and investor confidence.

The success of this pilot phase also serves as a precursor to future production and offtake agreements that could position E3 as a key contributor to North America’s clean energy value chain.

What Are the Commercial and Environmental Implications?

By proving that its lithium concentrate can yield high-purity metal anodes with consistent electrochemical performance, E3 Lithium is narrowing the gap between resource extraction and end-product deployment. This vertical integration could lead to shorter supply chains, reduced carbon footprints, and improved cost economics compared to sourcing lithium from traditional hard rock mining or overseas producers.

Moreover, Pure Lithium’s process eliminates the need for toxic or controversial cathode and anode materials, offering a potentially safer and more environmentally responsible battery product. This fits well within ESG mandates and could appeal to institutional investors looking to align with sustainable resource development.

From a geopolitical standpoint, the collaboration highlights Canada’s role in global battery manufacturing strategies. With growing demand for secure, domestic lithium supply, particularly in the U.S. and Canada under trade frameworks such as the Inflation Reduction Act and the Canada-U.S. Critical Minerals Agreement, E3 and Pure Lithium’s breakthrough holds strategic significance.

What Comes Next in the E3-Pure Lithium Battery Roadmap?

With Phase 1 testing completed, both companies are now focused on further optimizing the integrated process flow and scaling up to pilot production volumes. The testing demonstrated that lithium extracted via E3’s flowsheet is fully compatible with Pure Lithium’s electrodeposition technology and does not suffer from degradation or variability across different brine batches.

The next stage is expected to include extended life-cycle testing, temperature performance validation, and possibly early-stage engagement with battery OEMs or EV manufacturers. While Pure Lithium continues to fine-tune its proprietary battery chemistry for commercial deployment, E3 may look to incorporate battery-grade lithium manufacturing into its commercial feasibility planning.

Both companies are also expected to explore investment and government funding opportunities tied to clean energy and strategic minerals development. The positive performance results pave the way for grant applications under Canada’s Strategic Innovation Fund or partnerships with provincial governments eager to accelerate battery supply chain development.

What Are Analysts and Investors Saying?

Although analyst coverage remains limited for E3 Lithium due to its pre-revenue status, the company has garnered increasing attention among institutional investors, particularly those focused on the energy transition and critical minerals sector. The robustness of Phase 1 testing provides a strong proof-of-concept that may reduce the technological and commercial risk profile typically associated with early-stage lithium ventures.

Investor sentiment remains cautiously optimistic, with focus now turning toward future scalability, cost curves, and whether E3 can secure meaningful offtake or battery supply agreements. The announcement also comes at a time when global lithium prices have been volatile, making breakthroughs in cost-effective and high-yield production more valuable than ever.

E3’s ability to execute a long-term, high-value lithium production strategy without reliance on environmentally disruptive mining methods or offshore refining could become a major differentiator in the competitive battery materials market.

In a sector driven by innovation, regulatory alignment, and the race for decarbonization, E3 Lithium and Pure Lithium have taken a critical step forward. The Phase 1 results validate the technical compatibility, cost efficiency, and environmental appeal of their combined technologies. With scalability efforts now on the horizon, this collaboration may soon shift from promising pilot to cornerstone of North America’s lithium battery supply chain.