Frontier Lithium Inc. (FL-X) is making moves toward becoming a major player in the Canadian battery supply chain, highlighted by the purchase of the site for its Thunder Bay refinery and receiving backing from private and public sources.

The Sudbury-based mining company is developing a mine site in northwest Ontario that will supply its conversion facility designed to produce enough battery-grade lithium salts for 500,000 electric vehicle (EV) batteries per year at minimum.

On Feb. 28, Frontier announced it completed the acquisition of the Mission Island Lands in Thunder Bay, the future site of the refinery. Formerly home to a coal-fired plant, it will be repurposed into a link in the emerging battery sector supply chain that aims to reduce dependency on fossil fuels.

“With the strategic access to road, rail, water networks, Thunder Bay really can create a hub that will connect Ontario’s lithium resources in the north to provincial, national and global markets,” Trevor Walker, CEO and president of Frontier, told Sustainable Biz Canada in an interview.

Then earlier this month, the company announced it would partner with Mitsubishi Corporation, with the Japanese conglomerate taking a 7.5 per cent interest in the refinery for $25 million. As part of the agreement, Mitsubishi has the right to raise its stake to 25 per cent.

The Canadian and Ontario governments have also announced their intent to financially support Frontier, a move which Walker said is relevant given the political and economic shifts between Canada and the U.S.

Frontier’s assets

Frontier’s 100 per cent-owned mine called the PAK Lithium Project is located near Pakeagama Lake, close to Ontario’s border with Manitoba.

Once operating, the mine will provide a lithium ore named spodumene for refining. Frontier will concentrate the ore and process it into lithium salts that are used to make batteries.

The site has 183 acres of heavy industrial property, which is enough to house a facility with an output of 20,000 tonnes of lithium salts per year, and room to grow to accommodate other mines.

Frontier will be starting the definite feasibility study for the conversion facility “shortly”, Walker said, which will take 12 to 18 months to complete. If all goes as expected, the plan is to start construction in 2027 and operations to begin in 2030.

Approximately 200 jobs in the refinery and around 500 construction jobs will be created.

Frontier has had options on Mission Island Lands since 2023, Walker said. Key advantages of the site are the pre-existing energy infrastructure and connections to transportation networks, which provide the power and easy access to markets.

Northern Ontario is one of Canada’s mining hubs. Shared factors have made the region a popular choice for lithium projects in recent years, with Frontier’s peers such as Avalon Advanced Materials Inc., Rock Tech Lithium Inc. and Wyloo announcing plans.

Corporate, government support for Frontier

Asian companies such as Mitsubishi Corporation have extensive expertise in the battery sector, so Frontier found it important to transfer its knowledge into North America, which Walker said does not have as deep of a foundation.

The Tokyo-based company is a “great cultural fit” for Canada and “an invaluable partner with global experience from mining to chemicals,” Walker said.

“It’s beyond finance. It’s really also about bringing both money and that experience so we can have success in developing the lithium salts so that we can successfully and competitively deliver electric vehicles in Ontario.”

Governments have also expressed an interest in Frontier.

The Canadian and Ontario governments said they intend to cover a portion of the capital expenditures for the refinery if Frontier can satisfy certain conditions. Walker said the funding is expected to be in the form of grants and tax credits that cover up to half of the required funding for the refinery.

Governments want to see Canada’s domestic battery supply chain develop, he observed, noting the investments into battery and EV manufacturing, critical minerals and the desire for a more independent energy industry that has taken precedent with the U.S.’s protectionist turn.

Frontier aims to serve automakers looking to get involved with batteries, or companies building precursor cathode active material factories in Ontario like Umicore N.V.

Though the province’s nascent battery sector is facing some growing pains, such as Umicore’s multibillion-dollar project being delayed, Walker is optimistic it is a temporary snag.

A delay is not a cancellation he said, and opportunities lie elsewhere such as in Quebec which is also fostering its battery industry. Thus, Walker does not anticipate Frontier will be delaying its mine and refinery because of setbacks faced by the likes of Umicore.

“It’s in our interest to make sure that we leverage such an anchor resource, good times or bad.”