Prairie Lithium (ASX:PL9) nears construction completion with fully secured offtake and clear path to first revenue
Jane Morgan Management
Key Facts:- Construction of Prairie Lithium's commercial-scale DLE facility in Saskatchewan is nearing completion, with first production targeted for Q4 2026
- 100% of Phase 1 production (150 tonnes per annum lithium carbonate equivalent) is secured under binding offtake agreement with South Korea's Hydro Lithium
- Project benefits from established infrastructure in Saskatchewan and is strategically positioned to supply both North American and Asian battery markets
- The project is underpinned by a 4.6 million tonne LCE resource base with potential for expansion through a pad-by-pad development model
- Building interior completion expected in Q2 2026, followed by equipment installation and commissioning later in the year
13 April 2026 – Prairie Lithium Limited (ASX:PL9, OTC:PLIXF), is approaching a major development milestone at its Prairie Lithium Project in Saskatchewan, Canada, with construction of its commercial-scale Direct Lithium Extraction (DLE) facility nearing completion and first production targeted for Q4 2026.
The Company confirmed that the building interior is on track for completion in Q2 2026, enabling equipment installation through Q2–Q3 2026, followed by commissioning later in the year. Key enabling infrastructure, including production and disposal wells, powerlines and transformers, and major structural works, has already been completed, positioning the project on a clear pathway to first production.
Prairie Lithium Managing Director, Paul Lloyd, commented:
“This update marks a critical step as we execute the construction that prepares us for commissioning and first production. With the DLE facility nearing completion and equipment installation scheduled in the coming months, Prairie Lithium is firmly on track to deliver first production in Q4 2026.
Importantly, 100% of Phase 1 production is secured under a binding offtake agreement, providing revenue visibility, and reducing project risk. The ~$10 million strategic contribution from Hydro Lithium further lowers capital requirements and strengthens our development model.
We believe Prairie Lithium is well positioned to become one of the first lithium brine producers in North America, supplying a rapidly growing global market. Beyond Phase 1, our scalable strategy provides a clear pathway to expand production and deliver long term value.”
Fully de-risked path to revenue
Prairie Lithium has secured 100% of its Phase 1 production (150 tonnes per annum lithium carbonate equivalent) under a binding offtake agreement with South Korea’s Hydro Lithium. Under the agreement, Hydro Lithium will purchase the full output, supply and operate approximately A$10 million of proprietary refining equipment, and convert the lithium into battery-grade material for sale into established Asian battery supply chains.
This structure provides significant de-risking through secured demand, reduced capital intensity, and access to downstream processing capabilities, supporting strong revenue visibility from first production.
Strategic positioning in global lithium markets
The Prairie Lithium Project is emerging at a critical time in the global energy transition, with demand for lithium continuing to grow rapidly due to electrification, electric vehicle adoption, and energy storage expansion.
Located in Saskatchewan, one of the world’s most mining-friendly jurisdictions, the project benefits from access to established oil and gas infrastructure, enabling efficient and cost-effective development. The Company is strategically positioned to supply lithium into both North American and Asian battery markets while contributing to diversification of global supply chains.
Scalable development model underpinning long-term growth
Phase 1 represents a commercial-scale proof of concept, with Prairie Lithium targeting expansion through a repeatable pad-by-pad development model. The project is underpinned by a large 4.6 million tonne LCE resource base and offers the potential to expand production and offtake volumes over time.
This scalable approach provides a clear pathway from initial production to meaningful long-term supply growth, supported by increasing global demand for secure, low-impact lithium supply.
Next steps
Upcoming milestones include completion of facility construction, transition to equipment installation, commissioning of the DLE plant, and delivery of first production in Q4 2026. The Company will also focus on operational performance metrics and potential expansion beyond Phase 1.
About us:
About the Prairie Lithium Project
PL9’s Prairie Lithium Project in Saskatchewan, Canada, is in one of the world’s top mining friendly jurisdictions. The project has easy access to key infrastructure including electricity, natural gas, fresh water, paved highways and railroads. The project also aims to have strong environmental credentials, with Prairie Lithium targeting to use less freshwater, land and waste, aligning with the Company’s sustainable approach to lithium development.
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
[email protected]