Prairie Lithium has secured a 10-year binding export agreement with South Korea’s Hydro Lithium and progressed key construction milestones at its Saskatchewan project, positioning itself as a rising player in North America’s lithium sector.
- 10-year binding export agreement with Hydro Lithium scaling to 10,000 tpa LCE
- Non-binding offtake deal for 6,000 tpa lithium chloride with Stardust Power
- Completion of groundworks and geotechnical works at Pad #1
- Approval received to connect Pad #1 to SaskPower grid electricity
- Raised $1.45 million via at-the-market equity placement with Acuity Capital
Strategic Long-Term Agreements Cement Commercial Outlook
Prairie Lithium Limited (ASX, PL9) has taken significant strides in the December 2025 quarter, securing foundational commercial agreements that underpin its ambition to become Canada’s first commercial-scale lithium brine producer. Central to this progress is a binding 10-year export contract with South Korea’s Hydro Lithium, initially covering 150 tonnes per annum of lithium carbonate equivalent (LCE) and targeting a scale-up to 10,000 tonnes annually. This deal not only guarantees a stable revenue stream but also signals confidence from a major Asian lithium consumer in Prairie’s project viability.
Complementing this, Prairie Lithium inked a non-binding offtake agreement with Stardust Power in the United States to supply 6,000 tonnes per annum of lithium chloride. While non-binding, this arrangement further validates the economic potential of the Prairie Lithium Project and broadens the company’s footprint across key global lithium markets.
Infrastructure Milestones Propel Project Development
On the operational front, Prairie Lithium completed essential groundworks and geotechnical assessments at Pad #1, the site designated for its lithium extraction facility in Saskatchewan. The company also secured approval from SaskPower to connect this pad to the regional electricity grid, a critical step that enables the commencement of construction activities slated for early 2026. These developments mark tangible progress from exploration to production readiness, reinforcing the company’s timeline to commercialisation.
Capital Raising Supports Growth Trajectory
To fund ongoing development and operational activities, Prairie Lithium successfully raised $1.45 million through an at-the-market equity placement with Acuity Capital. This capital injection bolsters the company’s balance sheet, providing approximately seven quarters of funding at current expenditure levels, and underscores investor appetite for lithium assets amid rising global demand for battery metals.
Positioning in the North American Lithium Landscape
Prairie Lithium’s strategic partnerships and infrastructure progress position it as a noteworthy contender in the North American critical minerals sector. By establishing supply chains linking Canada to South Korea and the United States, the company is not only advancing its commercial objectives but also contributing to the diversification of global lithium supply; a key consideration amid geopolitical shifts and the accelerating energy transition.
Managing Director Paul Lloyd highlighted the alignment of rising lithium prices with project milestones, emphasising the company’s secured price floor and upside potential. As Prairie Lithium moves toward operational production, market watchers will be keen to see how these foundational agreements translate into revenue and how swiftly production scales to meet ambitious targets.
Bottom Line?
With binding contracts and infrastructure approvals in place, Prairie Lithium is poised to transform from explorer to producer, but execution risks and market dynamics remain key watchpoints.
Questions in the middle?
- What is the timeline and feasibility for scaling production from 150 tpa to 10,000 tpa LCE under the Hydro Lithium agreement?
- How binding and financially impactful is the Stardust Power offtake agreement given its non-binding status?
- Will Prairie Lithium require additional capital raises to fund construction and ramp-up beyond the current $1.45 million placement?