Arizona Lithium Targets 150tpa Lithium Production at Prairie with $35M Initial Investment

Strategic Phased Development Unveiled

Arizona Lithium (ASX: AZL) has taken a significant step forward in the race to establish North America’s first lithium brine production facility with an updated commercial development plan for its Prairie Lithium Project in Saskatchewan, Canada. The company’s approach is methodical and risk-conscious, rolling out production in three distinct phases designed to validate and scale its innovative Direct Lithium Extraction (DLE) technology.

Phase I focuses on bringing Pad #1 into production with a commercial-scale DLE unit capable of producing 150 tonnes per annum (tpa) of lithium carbonate equivalent (LCE). This initial phase requires a relatively modest capital expenditure of AUD 35 million (approximately USD 22 million), a figure that underscores the company’s commitment to cost-effective development.

De-Risking Through Commercial Scale Proof of Concept

By processing around 1,000 cubic meters of lithium-enriched brine daily, Phase I will serve as a critical proof of concept, de-risking the technology and operational parameters such as temperature, pressure, and chemical constituents. This commercial-scale operation will run continuously, providing valuable data and confidence to stakeholders and potential partners.

Arizona Lithium is actively exploring non-dilutive capital avenues, including strategic partnerships undergoing due diligence, government grants and loans, and traditional debt financing. This diversified funding strategy aims to preserve shareholder value while ensuring the project’s timely progression.

Modular Expansion and Regional Growth Potential

Following the successful commissioning of Phase I, Phase II will rapidly expand production capacity at Pad #1 by deploying additional DLE units and drilling more wells. The modular nature of the technology allows for swift scale-up, a critical advantage in the fast-evolving lithium market.

Phase III envisions replicating the Pad #1 design across Pad #2, Pad #3, and other sites currently being finalized. This multi-pad strategy leverages the extensive drilling and permitting work completed in 2024, positioning the Prairie Project for substantial growth in output.

Strategic Partnerships and Market Positioning

Arizona Lithium has engaged Grey Owl Engineering, a respected Western Canadian oil and gas facilities engineering firm, to lead the engineering, procurement, and construction (EPC) of the facility. This partnership brings valuable regional expertise to the project’s execution phase, with construction slated to commence in the second quarter of 2025.

The Prairie Lithium Project’s location in Saskatchewan offers excellent infrastructure access and a mining-friendly jurisdiction, enhancing its appeal. In addition, the company is targeting the mature Asian battery market, with battery-grade lithium carbonate samples already being tested by interested parties in Asia, signaling early market traction.

Sustainability and Environmental Credentials

Aligned with growing investor and regulatory emphasis on sustainability, Arizona Lithium is committed to minimizing freshwater use, land disturbance, and waste generation. This approach not only supports environmental stewardship but also strengthens the project’s social license to operate in a sensitive and competitive market.

Managing Director Paul Lloyd highlighted the company’s progress and strategic clarity, emphasizing the phased plan’s role in de-risking and scaling the project efficiently. The upcoming months will be pivotal as construction begins and the company moves closer to its milestone of first commercial lithium brine production in North America.