Saskatchewan Defines Royalty Structure to Prepare for Lithium Development

Released on October 6, 2025

The Government of Saskatchewan is supporting the development of the province's emerging lithium industry with the introduction of regulatory amendments to set a clear and consistent royalty framework for lithium and other minerals produced from natural brine aquifers.  

These amendments to The Subsurface Mineral Royalty Regulations, 2017 will provide certainty for resource companies looking to develop or invest in lithium projects in Saskatchewan.  

"Lithium is a critical mineral that is expected to see strong demand and growth in the decades ahead, and Saskatchewan is well-positioned to take advantage of this opportunity," Energy and Resources Minister Colleen Young said. "By putting this royalty framework in place now, we are providing certainty for industry, while ensuring the people of Saskatchewan benefit as this sector develops."

The new royalty framework sets a Crown royalty rate of 3 per cent of the value of brine mineral sales, with a two-year holiday for new productive capacity. The rate set is consistent with Saskatchewan's Crown royalties for potash, salt and sodium sulphate, while the overall system is competitive with other leading jurisdictions developing lithium from deep natural brine aquifers.  

"This is another example of the Government of Saskatchewan continuing to encourage responsible resource development and employment in the province," Grounded Lithium President and CEO Gregg Smith said. "This new regulatory framework provides a reasonable royalty rate while also recognizing the significant risk and initial investment companies make in processing facilities to ultimately achieve commercial production. Our pursuit of the most attractive geology brought Grounded Lithium to Saskatchewan, and we are pleased to be here."

Saskatchewan remains Canada's leading province for mining investment, according to the Fraser Institute's Annual Survey of Mining Companies. In 2025 Saskatchewan is projected to attract over $7 billion in mining investment and account for more than 25 per cent of total mining investment in Canada.  

In 2023 the province introduced 'Securing the Future: Saskatchewan's Critical Minerals Strategy,' aiming to grow the sector in line with the Saskatchewan growth plan. This strategy targets increasing Saskatchewan's share of national mineral exploration to 15 per cent by 2030, doubling the number of critical minerals produced, and growing the output of potash, uranium and helium. It also aspires to position Saskatchewan as a key hub for rare earth elements.  

Click here to learn more about the province's critical minerals strategy.

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