Prairie Lithium is the largest active lithium brine developers in Saskatchewan, and one of the largest active lithium brine developers in Canada. The land acquisition increases Prairie Lithium's total mineral holdings in Saskatchewan to over 220,000 acres (89,000ha).

The land acquisition comes after Prairie Lithium's successful Direct Lithium Extraction (DLE) proof of process pilot project that operated in Saskatchewan from August to October 2020.

The province of Saskatchewan produces a large volume of lithium-enriched brine water as a by-product of energy sector operations. Prairie Lithium holds the mineral rights to the brine and uses ion exchange in its proprietary process to extract the lithium out of the brine.

For the pilot project, Prairie Lithium installed its proprietary DLE equipment, called Prairie Lithium-Ion Exchange (PLIX), on an active oil and gas site in Saskatchewan. PLIX selectively removes lithium from impurities in solution by utilising the ionic properties of lithium to perform selective extraction. Once the crude lithium product is extracted from the brine, it is converted into a lithium sulphate concentrate, and further converted into lithium carbonate. The PLIX technology's modular design means it can easily be integrated into an existing brine stream that contains lithium.

Lithium carbonate and lithium hydroxide are two key compounds used in lithium-ion batteries. With lithium-ion battery manufacturing increasing around the world, the price of lithium compounds have increased drastically over the past few months. Prairie Lithium said that demand for lithium is expected to outpace supply within the next few years unless, in the company management's view, new mines are brought into production at a record pace.

Prairie Lithium added that its expertise in brine hydrochemistry and hydrogeology, coupled with its internal analytical capacity and its proprietary lithium extraction technology, positions it to be a leader in lithium brine development in Saskatchewan and beyond. The company noted that North America currently imports 98.5% of its lithium requirements, and that with increased domestic production of lithium-ion batteries, it is poised to feed a growing market.