Report suggests Alberta could sit on $1 trillion lithium goldmine

The Canadian Energy Centre reports that Alberta could emerge as a major lithium supplier as global demand for electric vehicle batteries surges, with the province pursuing an innovative extraction method that promises significant environmental advantages.

A comprehensive assessment by the Alberta Geological Survey and Alberta Energy Regulator reveals Alberta sits atop one of the world's largest lithium deposits — an estimated 82.5 million tonnes of lithium carbonate equivalent buried deep underground.

The full geological report is downloadable here.

New technology builds on oil and gas expertise

Alberta companies are developing direct lithium extraction (DLE) technology that draws on decades of oil and gas expertise to pull lithium from underground saltwater formations. The process uses specialized solvents to extract lithium before pumping the remaining brine back underground, dramatically cutting land use and water consumption compared to traditional mining methods.

Kim Mohler, who serves as vice-president of project development at energy consulting firm GLJ Ltd., said Alberta's existing petroleum industry infrastructure gives the province a head start in lithium development.

Mohler noted that Alberta already possesses the drilling knowledge and infrastructure needed to access deep underground brines, along with exploration data that other regions still need to gather. She spends much of her time helping clients advance lithium and geothermal projects across North America, including several Alberta DLE operations.

World-class resource in historic oil formation

The province's lithium reserves concentrate heavily in the Devonian-age Leduc formation — the same rock layers that sparked Alberta's modern oil boom in 1947. Additional significant deposits lie within the Swan Hills and Nisku formations.

The geological survey's analysis suggests Alberta's lithium could supply batteries for more than 10 billion electric vehicles and potentially generate over US$1 trillion in revenue over time.

North America faces supply shortage

North American lithium demand faces explosive growth in the coming years. S&P Global forecasts show U.S. consumption jumping roughly 74 percent annually while Canadian demand climbs about 40 percent by decade's end.

Currently, North America produces just a fraction of global lithium supply. The continent generated 40,000 tonnes of lithium carbonate in 2024 from total worldwide production of 1.28 million tonnes. Canada contributed approximately 5,983 tonnes, representing 2.5 percent of North American output, according to the Canada Energy Regulator.

Alberta challenges global leaders

Alberta is positioning itself as a new competitor in a market traditionally dominated by Chile, Argentina and Australia. Companies have already secured lithium exploration leases covering roughly two million hectares across the province.

Calgary-based E3 Lithium leads Alberta's lithium development efforts. The company achieved a significant milestone in 2025 by producing the province's first battery-grade lithium carbonate at its demonstration plant near Olds. This breakthrough validated the technical viability of extracting lithium from Alberta's underground brines.

Commercial production still unproven

E3 Lithium combines Alberta-developed DLE technology with existing oilfield infrastructure as it works toward commercial-scale production later this decade.

Mohler emphasized that no company has yet proven DLE technology works at commercial scale, but she believes Alberta has strong potential to lead this emerging industry. She suggested following the oil and gas sector's business model — with companies specializing in upstream production, transportation, processing and refining — could prove successful for lithium development.

More information is available at www.CanadianEnergyCentre.ca