Frontier, Mitsubishi agree Ontario lithium joint venture

Frontier, Mitsubishi agree Ontario lithium joint venture

Frontier, Mitsubishi agree Ontario lithium joint venture 1000 750 Energy Storage Journal

March 7, 2024: Frontier Lithium and Mitsubishi Corporation have agreed a joint venture deal to launch a lithium mining and processing operation in Ontario.

Under a definitive agreement signed on March 2, the partners will secure funding to develop the PAK Lithium Project mine and lithium chemicals conversion facility to supply the North American EV battery supply chain.

Mitsubishi will acquire an initial 7.5% stake in the project for C$25 million ($18.4 million) with Frontier holding the remaining shares.

The Japanese firm has an option to increase its stake to 25% following completion of a definitive feasibility study.

The partners said the joint venture has been structured to cover the equity funding for the planned mine and mill while maintaining at least 75% of future off-take.

The joint venture is already providing immediate and near-term financing to “aggressively advance the first fully integrated lithium mining and processing operation in Ontario”, the companies said.

A pre-feasibility study released in May 2023 confirmed the PAK project could be the continent’s highest quality, largest and lowest-cost producer of lithium hydroxide able to supply the rapidly growing EV industry in North America.​

 Canada and Japan signed a memorandum of cooperation last October committing the countries to working more closely to establish sustainable and reliable global battery supply chains.