Frontier Lithium and Mitsubishi partnered up for integrated lithium production in Ontario, Canada

On 4 March, Frontier Lithium and Mitsubishi announced a joint venture partnership to advance the first fully integrated lithium operation in Ontario, Canada. Mitsubishi will acquire an initial 7.5% interest in the project for C$25 million (around US$18 million), with the option to increase its interest to 25% upon completion of the Definitive Feasibility Study (DFS).

Currently, Frontier Lithium is advancing final permitting, metallurgical test work, and aiming at the DFS report in 2025 to make construct decision for a mine, mill and downstream chemical plant for lithium chemicals. Mitsubishi will work closely together with Frontier in financing to ensure the Project is fully funded to production.

Many companies have shown ambitions and plans to establish the first integrated lithium producing facility in Ontario, such as Avalon Advanced Materials with a deposit at Separation Rapids, Green Technology Metals with the Seymour project which is backed by LG Energy Solution's A$20 million (US$13 million) investment.

Most of these projects are still in the initial phase of development. Their timelines are highly subject to multiple factors like permitting, indigenous community communication, and financing activities. 2024 and 2025 will be a crucial period to see if the final investment decision is made and whether these players are prepared for commercial production and thus securing local supply chains for North American market.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market

Email: lilysu@smm.cn