09:20 AM EDT, 10/29/2025 (MT Newswires) -- E3 Lithium ( EEMMF ) , which lost 11.4% on Tuesday, said earlier Wednesday it began drilling of its lithium development well as part of phase 2 of its demonstration facility development in central Alberta.

This is E3 Lithium's ( EEMMF ) third lithium well drilled into the Leduc Formation and the company said that this builds upon the "successful production of battery-grade lithium carbonate" during phase 1 of the demonstration program in early October 2025.

A statement noted that phase 1 validated the design of E3 Lithium's ( EEMMF ) Direct Lithium Extraction (DLE) equipment at this scale. The company added that results from this well will provide additional reservoir performance data and brine analytics to support the design of the commercial lithium facility.

The company said that one of the objectives of this next drilling phase is validating subsurface geology through detailed analysis of core samples and integrate petrophysical properties derived from comprehensive well-logging datasets.

The next drilling phase is also aimed at collecting reservoir data to inform commercial wellfield and facility design, and also for providing brine for continued operation of its DLE and processing equipment previously commissioned in phase 1 of the demonstration facility. Another objective is to support engineering and permitting work for E3 Lithium's ( EEMMF ) upcoming commercial facility.

E3 Lithium ( EEMMF ) said that drilling and testing activities are expected to continue into November and that it will provide updates on drilling and testing operations.

"This well kicks off the second phase our Demonstration program, another important step forward as we advance toward commercial operations," said E3 Lithium's ( EEMMF ) President and Chief Executive Officer, Chris Doornbos. "Our drilling activities provide important data to inform our continued project design and enhances our understanding of reservoir performance capabilities."