ASX-listed Prairie Lithium has begun vertical construction at its Pad #1 commercial facility at the Prairie lithium project in Saskatchewan, Canada, following completion of foundation works.

The company reported that piles and grade beams for the plant foundation have been installed, allowing building construction to proceed as it moves to monetise its 4.6-million-tonne lithium carbonate equivalent (LCE) resource.

Prairie Lithium said it had selected a prefabricated steel building system for the facility, enabling wall panels to be manufactured in a controlled factory environment in Canada while power and foundation works were carried out on site earlier this year. The parallel construction approach is expected to shorten the overall build schedule, reduce weather-related risks and allow for faster future expansion.

2026 is expected to be transformational for the company, with the planned delivery of the largest commercial-scale Li-Pro direct lithium extraction equipment built to date. Once completed, the project is expected to become the first fully permitted lithium brine production operation within an established oilfield.

Prairie Lithium aims to produce lithium from brine sourced from an existing oilfield, an approach the company believes could reshape the rapidly evolving lithium market.

MD Paul Lloyd said the transition to full building construction marked a key step toward commercial production.

“The transition to full building construction at Pad #1, following the successful installation of piles and grade beams, marks a major milestone as we advance toward commercial lithium production in Saskatchewan,” he said.

“With plant construction now firmly underway, we are accelerating the monetisation of our world-class 4.6-million-tonne LCE resource.”

Lloyd added that selecting a prefabricated structural panel system had allowed the company to manufacture complete load-bearing wall assemblies off site while foundation and power works progressed at the project.

“This parallel workstream significantly compresses construction timelines, reduces weather-related risk, and provides a scalable, repeatable ‘cookie-cutter’ model that supports rapid future expansion,” he said.

Prairie Lithium also confirmed that 100% of its initial lithium production had already been secured under an offtake agreement with Hydro Lithium of South Korea, providing a commercial foundation for the project as lithium prices strengthen.