How Prairie Lithium’s New DLE Unit and Rail Deal Could Reshape Lithium Supply

Strategic Shift and Capital Strengthening

Prairie Lithium Limited (ASX – PL9) marked a transformative quarter ending September 30, 2025, by divesting its Big Sandy Lithium Project and Lithium Research Centre in Arizona. This move, which generated approximately US$5 million in non-dilutive capital, allows the company to concentrate its resources on advancing the Prairie Lithium Project in Saskatchewan, Canada. The sale not only bolstered the company’s cash reserves to A$8.7 million but also streamlined its operational focus, reducing overheads and positioning Prairie Lithium for accelerated development.

Advancing Production with Direct Lithium Extraction Technology

Central to Prairie Lithium’s progress is the initiation of fabrication for a commercial-scale Direct Lithium Extraction (DLE) unit, approved by the Saskatchewan Ministry of Energy and Resources. This unit, designed in collaboration with Koch Industries and integrating technology transitioned from Aquatech’s acquisition of KTS DLE business, is scheduled for delivery in April 2026. The modular design promises scalability, enabling Prairie Lithium to ramp up production efficiently as demand grows.

Securing Market Access and Strategic Partnerships

Recognizing the importance of logistics in lithium supply chains, Prairie Lithium signed a Memorandum of Understanding with Long Creek Rail to develop a dedicated transload facility along a 41-mile rail corridor that connects directly to Canadian Pacific Railway. This infrastructure deal is pivotal, granting Prairie Lithium seamless access to North American and international markets. Complementing this, the company engaged in multiple strategic meetings with government officials and potential partners across North America and Asia, signaling strong interest and support for its project.

Brand Evolution and Offtake Prospects

Reflecting its renewed strategic focus, the company formally changed its name from Arizona Lithium to Prairie Lithium in September 2025. Shortly after the quarter’s end, Prairie Lithium signed a non-binding Letter of Intent with Stardust Power Inc., a North American lithium refining company, to supply 6,000 metric tons of lithium carbonate equivalent annually starting as early as 2027. While non-binding, this agreement underscores the project’s economic viability and potential to contribute meaningfully to the lithium supply chain.

Financial Position and Outlook

Prairie Lithium’s financials reveal a cautious but optimistic stance. The company raised an additional A$900,000 through an At-The-Market equity subscription, earmarked for construction of the initial production facility. Operating and investing activities reflected expected expenditures on exploration and development, balanced by the proceeds from asset sales. With an estimated three quarters of funding available, Prairie Lithium appears well-positioned to sustain its operations and meet near-term milestones.