ASX-listed Arizona Lithium has announced a nonbinding memorandum of understanding (MoU) to develop a dedicated transload facility for its  Prairie lithium project in Saskatchewan, Canada.

The proposed facility will be situated along Long Creek Rail’s 41-mile corridor, which runs directly across the Prairie project and connects to the Canadian Pacific Railway at Estevan. The connection gives Arizona Lithium access to North American and international markets via Class 1 rail infrastructure.

“This agreement represents a key milestone in de-risking the scale up of the Prairie project,” said Arizona Lithium MD Paul Lloyd. “By leveraging Long Creek's established infrastructure and regional expertise, we reduce the handling logistics and trucking of our lithium products across the project area. LCR currently services the agriculture and oil & gas industry in the area, and we look forward to future collaboration with them to utilise this critical infrastructure.”

Under the terms of the MoU, Arizona Lithium will take the lead on site selection, design and construction of the transload facility, while Long Creek Rail will provide rail access, logistics support, and integration into its existing network. The facility may eventually co-host a battery-grade lithium refinery, enabling efficient inbound delivery of reagents and outbound shipment of refined lithium products.

The deal follows the Saskatchewan Ministry of Energy and Resources’ approval of Phase 1 production at the Prairie Lithium Project, which will begin at Pad #1 using a commercial-scale direct lithium extraction (DLE) unit. The DLE unit is expected to initially produce 150 t/y of lithium carbonate equivalent (LCE), with scalability supported by replication of the processing units.

Located in the Williston Basin – one of the world’s most mining-friendly jurisdictions – the Prairie project benefits from proximity to electricity, water, natural gas, paved highways, and now, a direct rail corridor. Arizona Lithium says the project’s design aligns with its broader sustainability goals, including reducing freshwater and land use.

The planned infrastructure development is expected to enhance supply chain efficiency, shorten delivery timelines, and support Arizona Lithium’s ambitions to serve both domestic and global lithium markets as demand for battery materials continues to surge.