Navigating the emerging lithium rush: lithium extraction from brines for clean-tech battery storage technologies

Abstract

The expansion of electric vehicle technologies and renewable energy storage will increasingly depend on lithium-ion batteries. Current lithium extraction operations are far from the environmentally and socially compliant operations desired by the ‘clean-tech’ industry. However, an innovative and more compliant lithium extraction process has emerged. Several companies are actively working on scrubbing lithium from lithium-enriched brines by purifying wastewater from oil and gas operations or through standalone extraction facilities. This paper examines the legal considerations and risks associated with the development of a novel lithium brine extraction industry in Western Canada, primarily focused on Alberta as a traditional oil and gas jurisdiction. Our analysis of Alberta's subsurface regimes identifies and discusses ambiguities that the Alberta government may need to address for this emerging subsurface industry. Similarly, we identify unique contractual considerations for counsel to contemplate when advising parties involved in this new industry. We conclude that the current legal landscape in Alberta, from both a regulatory and a contractual perspective, needs further clarification in order to attract a large-scale and viable industry. Nevertheless, we emphasise that Western Canada is ripe with opportunity to commercialise on a new lithium extraction industry and take note of the increased governmental interest in the development of this emerging industry.