In February, Frontier Lithium selected the former Ontario Power Generation station site on Mission Island as the location for its proposed lithium refinery. The facility is designed to produce 20,000 tonnes of lithium hydroxide (LCE) annually, enough to support battery production for 500,000 electric vehicles per year.
The Sudbury-based mining developer is now moving forward with detailed planning and cost estimation for the lithium refinery along Thunder Bay’s waterfront. The company has initiated a Definitive Feasibility Study (DFS) to determine the refinery’s scale and investment requirements. Once operational, the facility will process spodumene concentrate from Frontier’s lithium deposits north of Red Lake, positioning Thunder Bay as an international lithium processing hub.
While Frontier Lithium has not yet made a final decision on constructing the refinery or its associated mine, the comprehensive technical and economic study will provide critical insights. The DFS is expected to be completed within 18 months, with Fluor Canada—an engineering and construction firm experienced in large-scale critical minerals projects—leading the study.
Anticipated Government Funding Support
In a July 31 news release, Frontier Lithium expressed optimism about securing financial backing from both the federal government (Ottawa) and the Ontario government (Queen’s Park). The two levels of government are expected to sign agreements in 2025/2026, covering a "significant portion" of the refinery’s construction costs. Canada’s governments are actively promoting critical mineral development and supporting large-scale resource projects.
Trevor Walker, President and CEO of Frontier Lithium, stated:
"Advancing this phase of the project is critical not only for Frontier but for ensuring the success of a made-in-Canada EV battery supply chain. We are confident in our project team’s lithium refining expertise and excited to move forward into this next stage."
Site Selection and Production Capacity
The chosen refinery site on Mission Island, previously home to a decommissioned power station, will have an annual output of 20,000 tonnes of lithium hydroxide (LCE)—sufficient to power half a million EVs yearly.
The primary feedstock will come from Frontier’s PAK Project, located 175 km north of Red Lake, which the company touts as "North America’s highest-grade lithium resource" and the second-largest on the continent. The PAK deposits are projected to generate $11 billion in revenue over a 31-year mine life. If all progresses as planned, mining could begin by 2030, creating over 230 jobs. However, government-funded road and bridge infrastructure will be required to transport materials from the remote site.
