Representatives from Frontier Lithium led a group from its joint venture partner, Mitsubishi, on a tour of the proposed conversion facility in Thunder Bay at the former Ontario Power Generation site, as well as its mine this month.
Greg Da Re, Frontier Lithium’s vice-president of corporate development, said recent tours of both its mine and conversion facility sites were an opportunity for some newer executives from Mitsubishi to become better acquainted with Northern Ontario and with the scope and potential of the project. The goal is to break ground in 2027 or 2028 and begin production by 2030.
Da Re said Frontier selected Thunder Bay for the facility based on a combination of strategic and community-focused factors.
“The city’s longstanding reputation as a hub for natural resource processing and its pre-existing industrial infrastructure aligns well with our operational needs, and we’re confident in the availability of skilled talent to support our lithium conversion facility,” he said.
“Additionally, Thunder Bay offers a high quality of life – access to nature, vibrant communities, and a family-friendly environment, which are all important when planning to hire several hundred employees.”
Da Re added that from a logistical standpoint, Thunder Bay’s role as a transportation hub can accommodate global shipping, and its proximity to Ontario’s anchor resource and other potential feedstock sources further reinforced their decision.
A feasibility study for the conversion facility began earlier this year and Da Re said this is a critical step in the development process, which will take time to complete.
“We’re also closely monitoring market conditions,” he said. “While the EV market continues to grow globally, adoption has slowed due to factors such as limited charging infrastructure and the reduction of consumer incentives.”
Da Re noted that these dynamics have impacted the timing of several downstream battery plant developments, causing Frontier Lithium to adjust its timeline accordingly to ensure long-term success.
The feasibility study is key to informing the permitting and other regulatory processes, Da Re said.
They are also working with Indigenous peoples and all relevant stakeholders to ensure compliance and transparency.
Lithium supply
Meanwhile, the current softness in lithium pricing reflects broader market complexities.
MP Marcus Powlowski said China has a stranglehold on critical minerals, and countries, including Canada and the United States, want to ensure that they have their own sources of critical minerals.
“Companies from other countries don’t like the fact that they’re dependent on the Chinese, who are also potentially not a reliable partner either. And again, the United States is increasingly not a reliable partner. So countries like Germany are looking to work with Canadian companies because they have more faith in Canada, “ Powlowski said.
“The Chinese are dumping lithium on the world market, meaning they’re selling it at less than the price that it is to produce it, but they’re doing it to ensure that we don’t develop our own lithium mines and refineries.”
He added that this ensures that they still have the market cornered in the next five to 10 years. The Canadian government is aware of this and Powlowski said they may have to invest to “get things off the ground.”
Da Re added that, although China continues to dominate the lithium processing industry and a significant portion of the EV battery supply chain, Western governments, including Canada and the U.S., have made significant strides over the past five years in establishing their own supply chains.
“We strongly support these initiatives and believe our timing is aligned with a growing demand for domestically sourced critical minerals from strategic resources,” Da Re said.
“Recent government programs aimed at accelerating critical mineral development validate our strategy to become a key supplier to the North American auto industry.”
Frontier Lithium’s immediate focus is advancing the feasibility study for the conversion facility and continuing engagement with government, First Nations and community stakeholders to secure the required mine site permits.
“We believe the global shift toward electrification presents a generational opportunity for Canadians, and especially for communities in Northwestern Ontario, and we’re proud to be playing a small role in that transformation,” he said.
