TKMS and E3 Lithium Sign Teaming Agreement to Support Canada’s Submarine Program and Critical Minerals Supply
Press Release + Noah Note
The Teaming Agreement establishes cooperation on research, technology transfer, and investment to support the Canadian Patrol Submarine Project (CPSP).
The Partnership would integrate Canada’s lithium resources into strategic applications, with potential supply to German and allied industrial customers.
The Agreement provides a framework for future international collaborations and export opportunities, aligning with Canada’s Industrial and Technological Benefits (ITB) policy.
Kiel, April 8, 2026 – TKMS and E3 Lithium signed a Teaming Agreement to establish a strategic framework for cooperation in support of Canada’s future submarine capabilities under the Canadian Patrol Submarine Project (CPSP).
The Teaming Agreement sets the stage for collaboration on research, technology transfer and investment initiatives of mutual interest. The cooperation aims to integrate Canadian critical minerals into the submarine supply chain, with potential benefits for both domestic industry and international export markets.
“The CPSP represents a cornerstone of Canada’s naval capability, and critical minerals are essential to the technology that powers tomorrow’s submarines,” said Thomas Keupp, Chief Sales Officer at TKMS. “Through this agreement with E3 Lithium, we are not only securing access to a sustainable supply of lithium but also strengthening the industrial partnership between Germany and Canada. This cooperation reflects our shared commitment to innovation, sustainability, and long-term capability development.”
Under the agreement, TKMS and E3 Lithium, a leader in Canada’s lithium sector with the country’s largest lithium resource, will explore opportunities to leverage Canada’s lithium production for strategic applications. E3’s Clearwater Project, a direct lithium extraction development, is expected to produce up to 36,000 tonnes per year of battery-grade lithium at full capacity, supporting potential supply to German and allied industrial customers.
E3 Lithium will bring its extensive expertise in lithium resource development, extraction technology, and processing, contributing to the creation of a robust supply chain that can support both Canada’s submarine program and potential international opportunities.
“Partnering with TKMS allows us to connect Canada’s critical minerals industry with strategic global markets while supporting a transformative national defense program,” said Chris Doornbos, CEO at E3 Lithium. “This agreement is a strong step toward leveraging Canada’s lithium resources to create sustainable economic value, advance technology transfer, and strengthen industrial ties with Germany and allied nations.”
The Teaming Agreement also provides a foundation for exploring further cooperation on international projects that incorporate critical minerals into advanced technology platforms, leveraging TKMS’s global naval portfolio and E3’s leadership in the Canadian lithium sector.
Noah Note: One weird thing about CPSP so far has been the role of Critical Minerals in the conversation. No one doubts their value, and the Federal Government has made it clear its a key sector they would like to see TKMS and Hanwha tap into, however so far the movement on the sector has been fairly quiet and minimal.
So whenever a Critical Mineral related announcement gets put out there I tend to take a big note of it. Of course Lithium is one of the big ones that we expect to see tapped into for this. Almost everyone recognized in the short and medium-term that Lithium batteries will likely be the mainstay of Diesel-Electric submarines. There will be cases where Lead-Acid will continue to be an ultra-cheap option and potentially new salt or solid-state batteries could appear on the market?
However as lithium battery systems mature, get integrated onto more proposals, and become cheaper overall the trend will likely lean into Li-Ion becoming the overall standard for most people moving forward, at least the middle-ground option for many who don't need to absolutely cheap out.
For almost anyone the domestic supply of battery cells will be important, or at least having access to a ready supply. For Canada this is especially important as we try to domesticate the entirety of the ISS chain here. The peoduction of battery cells and systems has not been something overtly discussed around, perhaps because we expect it to happen no matter what, but it would be an absolute desire.
While we can argue about EVs and thr Electric Automotive Supply Chains value to Canada, from a defence standpoint the investments laid down in the last few years has positioned Canada as a player in the Battery ecosystem, with a foundational supply chain and expertise already being built up through investments like PowerCo and NextStar, German and Korean respectively.
The KSS-III Batch II utilizes Commerical Vsllz from Samsung SDI. I believe they are NMC? Don't quote me. The Type 212CD has long been rumored to utilize cells from SAFT but I can't confirm myself. Obviously a Canadian system could utilize different cells themselves, however I do make note of what the parent designs utilize.
E3 is a good partner for helping build up that supply chain. The Alberta Geological Survey and Alberta Energy Regulator estimate that the province’s subsurface contains an estimated 82.5 million tonnes of lithium carbonate equivalent, one of the largest accumulations in the world, and E3 is the first to start tapping into that.
Their demonstration facility near Olds started producing Alberta’s first battery-grade lithium carbonate starting in September. The company plans to scale up it's flagship Clearwater Project this year with Phase 1 aiming for a production target of ~12,000 tonnes/year of lithium carbonate with a total production capacity of ~36,000 tonners/year by 2030.
One thing about TKMS that I notice a lot in conversations and in their public discussions is demand. The company has significant pressure on it's existing supply chains, only set to grow as new orders from countries like India and potentially the likes of Greece and Argentine come through.
Li-Ion batteries will be a major cornerstone of those bids, and as such securing a steady, scalable supply battery cells will become importsnt for supporting TKMS global supply chain, not counting existing customers who might have interest in upgrading to Lithium Battery systems in the future.
So the presssure isnt just on us, but also on the company to ensure they have the avenues amd resources to support an ever-growing global network. That is something that can oftentimes be missed in these conversations. There is inherent value that companies see in Canada, and a need to build out new supply chains to meet growing demand. Oftentimes we view these sort of partnerships and agreements in a very insular way, either as forced by Canadian policy or as incentive to swoon interest.
It ignores that there is a lot Canada has to offer, and companies recognize that there is untapped potential in the Canadian market with large-scale growth and expansion that until now was either unfeesable or at least heavily disadvantaged. That has changed the last few months as Canada turns to the Defence Industrial Base and Industry to help insulate against outside policy decisions and economic downturn.
These kinds of partnerships are the ones we talk about championing often. They are mutual beneficial, common-sense investments that not only strengthen Canada’s Critical Mineral and Defence supply chain but allow us to contribute effectively to our collective security. These are the kinds of investments I like to see over grand-scale, song and dance partnerships and proposals that are overtly risky, require heavy feseral intervention to succeed, and don't have a natural path to long-term viability.
So, needless to say I am a happy boy and this gets a thumbs up from me.
Time for a celebratory drink!