Frontier eyes Ottawa, Ontario support for lithium facility
Frontier Lithium Inc. [FLI-TSXV, LITOF-OTCQX, HL2-FRA] has announced the Federal and Provincial government’s intent to support a lithium conversion facility in Thunder Bay, Ont.
The company said the combined government contributions aim to cover a significant portion of the expected capital expenditures required to build the lithium conversion facility. “This combined support is contingent upon a number of customary conditions and would be provided once contribution agreements are entered into between the company and the respective agencies,’’ the company said.
“By supporting the lithium conversion facility, both levels of government are laying the foundation for a robust critical minerals ecosystem in Ontario,’’ Frontier said.
The proposed lithium conversion facility is planned to convert lithium from the company’s PAK mine project in northwestern Ontario into approximately 20,000 tonnes of lithium salts per year. The expected capacity would support the production of batteries for approximately 500,000 electric vehicles per year, the company said.
Frontier said the proposed design of the facility will also permit the processing of materials from other lithium resources in Canada and abroad.
“Today marks a significant milestone in our journey to establish fully integrated lithium operations in Northwestern Ontario. We are pleased to see support for upstream critical minerals processing comparable to the commitments provided to the downstream manufacturing sector in Ontario,’’ said Frontier President and CEO Trevor Walker. “We appreciate the support from the federal and provincial governments and look forward to continuing to collaborate as we mobilize Canada’s critical mineral advantage – starting in Northern Ontario.
Frontier Lithium is a preproduction business. Its aim is to become a strategic domestic supplier of spodumene concentrates, as well as battery-grade lithium salts to the growing electric vehicle and energy storage markets in North America.
The company has said its PAK Lithium development project in northwestern Ontario is one of the highest quality known lithium mineral resources in North America due to its high-grade and low impurity properties in the pegmatite ore material and the spodumene mineral. PAK is a joint venture held 92.5% by Frontier Lithium and 7.5% by Mitsubishi Corp.
“Critical minerals are a generational economic opportunity for Canada,’’ said Jonathan Wilkinson, Canada’s Minister of Natural Resources. “From exploration to extraction to processing and advanced manufacturing to recycling, investments at every step of the value chain offer the opportunity for economic growth and the creation of good, sustainable jobs, all while enabling the technologies we need for a modern global economy.’’
On Wednesday, Frontier shares eased 3.8% or $0.03 to 76 cents. The shares trade in a 52-week range of $1.21 and 38.5 cents.
“Our government is working with Frontier Lithium and the federal government to protect Ontario workers and jobs by mining and refining our critical minerals right here in Ontario,’’ said Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade. “The front line in our battle against Donald Trump’s tariffs starts in Ontario with our abundant supply of critical minerals.’’