Prairie Lithium Ltd (ASX:PL9, OTC:PLIXF, FRA:PLIX) has started Factory Acceptance Testing (FAT) of its commercial-scale Direct Lithium Extraction (DLE) unit ahead of planned deployment to the company’s Phase 1 production facility in Saskatchewan, Canada.
The unit, comprising four commercial-scale DLE columns, is the largest of its type built in North America.
Once FAT is complete, the unit will be shipped to Saskatchewan for installation at Prairie Lithium’s Phase 1 production facility.
Engineers Assessing Prairie Lithium’s four column Commercial Scale DLE Unit during FAT.
Commissioning remains scheduled for Q4 2026, with first production expected to underpin initial revenue under the company’s binding offtake agreement with Hydro Lithium.
The DLE unit includes four commercial-scale columns, representing a substantial scale-up from the single commercial-scale Li-Pro DLE column deployed by Standard Lithium at its Arkansas project in March 2024.
Standard Lithium has reported strong operating performance from the Arkansas facility, including processing about 1 million barrels of brine, completing 15,000 DLE cycles and achieving more than 95% lithium recovery with 99% rejection of key contaminants.
The offtake covers 100% of Phase 1 production, equivalent to 150 tonnes per annum of lithium carbonate equivalent.
Hydro Lithium will also provide and operate about A$10 million of proprietary refining equipment at the Saskatchewan site, reducing upfront capital requirements.
Close Up View of Prairie Lithium’s four column Commercial Scale DLE Unit undergoing FAT.
What it means for Prairie
Prairie considers successful testing and deployment of the 4-column DLE unit a key milestone in validating its scalable development model.
Phase 1 is designed to establish commercial-scale proof of concept before potential expansion through a repeatable pad-by-pad development strategy.
Managing director Paul Lloyd said the start of FAT was “a critical milestone” as Prairie moved closer to installation, commissioning and first production.
“Commencing Factory Acceptance Testing of our commercial-scale DLE unit is a critical milestone for Prairie Lithium as we move closer to installation, commissioning and first production in Saskatchewan. The unit itself represents the largest DLE unit ever built in North America and we look forward to getting it installed in Saskatchewan in the very near future. Standard Lithium has demonstrated tremendous success with its single DLE column in Arkansas, and we are very excited to build on that success at four times the scale. Deploying one of the largest DLE units globally not only allows us to de-risk and rapidly scale our project, it also positions Prairie Lithium to generate revenue as we produce and sell lithium into our recently announced binding offtake with Hydro Lithium in South Korea,” Lloyd said.
Next steps
Following FAT, Prairie will transport and install the unit, continue remaining facility construction and integrate commercial-scale processing equipment.
After commissioning, the company plans to optimise and test operational performance, including lithium recovery and contaminant rejection, while assessing future expansion opportunities.