“It’s a big opportunity for the province because producing lithium is very similar to producing oil and gas,” said Doornbos, a geologist who previously worked for Suncor Energy Inc. “There’s a huge repurposing side to this because not only are we looking at using the infrastructure, but we’re looking at the people and the skillsets — everything that oil is to Alberta, lithium could be as well.”
Still, the investor sell-off highlights the challenges that lie ahead for Alberta, as E3 Metals and other companies, angle to tap into the province’s vast network of petrochemical experts and its existing resources, to stake a piece of the action in the world’s fast-growing, yet nascent electric vehicle supply chain. Lithium prices are suddenly rising again, but the small scale of the market, especially in comparison to oil or other commodities, means increased volatility, and tight competition.
In the month of January alone, the price for lithium that can be used in batteries is estimated to have surged more than 40 per cent, according to Miller. A rechargeable lithium-ion battery for the Volkswagen ID.3 electric car is pictured at the Volkswagen car factory in Germany.In Canada, that demand forecast is creating opportunities for lithium developers, whether they aim to extract from wastewater brine or from a hard rock mining operation.
In November, the Philadelphia-based Livent Corp., which supplies battery metals to Tesla Inc., cut ties with E3 Metals barely a year after striking a deal to invest US$5.5 million, citing capital constraints.