Government of Canada to partner with Frontier Lithium Inc. to expand the production of strategic battery materials
Company aims to expand the production and processing of lithium, help build out end-to-end battery supply chain in Canada
TORONTO, March 4, 2025 /CNW/ – Innovation, Science and Economic Development Canada
Worldwide demand for critical minerals is expected to double by 2040, and Canada is uniquely positioned to be a global leader and supply this growing market: we are abundant in many critical minerals and have the workers, businesses and communities with the know-how to scale up the processing and manufacturing of products and the mining and recycling of these minerals. Since the launch of Canada’s first-ever Critical Minerals Strategy in 2023, the government has made historic investments and removed barriers to get good mines and processing facilities built faster, without compromising the environment and Indigenous rights.
Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, on behalf of the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced that Canada is working with Frontier Lithium to support their proposal to develop and operate a lithium chemicals conversion facility in Thunder Bay, Ontario, as well as operate the Lithium Demonstration and Innovation Centre.
Frontier Lithium’s multi-hundred-million-dollar PAK Lithium Project is the first fully integrated lithium development initiative in Canada. It supports the Government of Canada’s goal of developing Canadian end-to-end supply chains for critical minerals in the face of an increasingly uncertain world. Frontier’s proposed project aligns with Canada’s priority of supporting the domestic production of critical minerals, including one of the six priority minerals identified in the Canadian Critical Minerals Strategy. Lithium is necessary for the manufacturing of electric vehicle (EV) batteries. Canada has enough planned lithium, nickel and graphite mines to support all planned domestic EV manufacturing.
As Canada continues to position itself for success with a cleaner, stronger and better-prepared economy—one that is competitive in a low-carbon world—projects like this one are key.
Quotes
“Canada is poised to lead the way in the sustainable production of the critical minerals needed in the new low-carbon economy. Critical minerals such as lithium are key to electrifying our transportation ecosystem. I am excited to see how Frontier’s project will drive Canada’s critical mineral production and create great economic opportunities for the province of Ontario.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
“Critical minerals are a generational economic opportunity for Canada. Investments at every step of the value chain—from exploration and extraction to processing, advanced manufacturing and recycling—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. Canada is making smart, targeted investments in the most promising projects, helping to ensure we are the global supplier of choice for critical minerals and the technologies they enable.”
– The Honourable Jonathan Wilkinson, Minister of Natural Resources
“Ontario’s abundant supply of critical minerals is one of our province’s greatest advantages. We’re so pleased to welcome Frontier Lithium’s interest in expanding its production of strategic battery minerals right here in Ontario, which will support our growing end-to-end critical minerals and electric vehicle battery supply chain. By continuing to grow Ontario’s critical minerals industry, we can strengthen our economy and protect Ontario workers and jobs, no matter what.”
– The Honourable Victor Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade
“At Frontier Lithium, our vision is to become North America’s leading supplier of critical materials. We are grateful for the confidence the Government of Canada has placed in this vision and for its support in developing our lithium conversion facility in Thunder Bay. This support will help ensure that we maximize the economic benefits of our natural resources while supporting the global transition to clean energy, and it will strengthen Canada’s position as a leader in in the global race for safe and secure critical minerals. We look forward to collaborating with the government as we continue to progress our project.”
– Trevor Walker, President and CEO, Frontier Lithium
Quick facts
- The PAK Lithium Project is a joint venture between Frontier Lithium and Japan’s Mitsubishi, showcasing an opportunity for Canada to supply our allies with the critical minerals they are looking for.
- Frontier’s goal is to become a domestic supplier of battery-grade lithium hydroxide for the growing electric vehicle (EV) battery and energy storage markets in North America.
- Lithium demand is projected to increase 500% by 2050 due to the growing domestic battery manufacturing and future-oriented transportation ecosystem.
- Frontier has received up to $6.1 million in conditionally approved funding under the Critical Minerals Infrastructure Fund for two projects to advance Indigenous engagement and engineering; one is for a 56 km all-season road and the other for electricity infrastructure.
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