Saskatchewan’s fledgling lithium industry has grown to the point where it now has its own royalty regime.
Lithium is one of those critical minerals that is a vital component in battery making, something that is foundational in the push towards more electrification. And Saskatchewan is poised to be a player in this field.
Unlike most lithium extraction processes which are something of mining process, Saskatchewan’s lithium is hosted in deep pools of brackish water or brine. By drilling deep wells, the brine can be brought to surface, filtered to capture the lithium and then pumped back underground.
The first tests were conducted in the Weyburn area by a local entrepreneur operating from a Regina base.
Early success prompted further development to the point where they now have commercial-sized capability. At the same time, other companies have joined the pursuit… all of which prompted the provincial government to establish a royalty or tax structure that will apply to lithium production. It will be treated similarly to royalties on potash, salt and sodium sulphate.
