Frontier Lithium announced that both the federal government and the Ontario government intend to support the company's planned lithium conversion facility planned for Thunder Bay, Ontario.
The combined federal and provincial contributions amount to up to C$240 million, which will cover a substantial portion of the expected capital expenditures for the project.
The federal and provincial governments' intent to support Frontier's planned lithium conversion facility signals a major step forward in aligning Canada's and Ontario's critical minerals strategies. By supporting the conversion facility, both levels of government are laying the foundation for a robust critical minerals ecosystem within Ontario.
Frontier Lithium’s proposed lithium conversion facility will convert lithium from the company’s PAK mine project into about 20,000 tons of lithium salts per year. This expected capacity would support the production of batteries for approximately 500,000 electric vehicles per year.
The proposed design of the facility also allow permit the processing of materials from other lithium resources in Canada and abroad. Lithium is a critical component of lithium-ion batteries, particularly for electric vehicles and energy storage systems (ESS). The Lithium conversion facility will be the first of its kind in Canada, significantly strengthening North America's energy and critical minerals supply chain while reducing the dependence on lithium from foreign markets.
Trevor R. Walker, president and CEO of Frontier Lithium, commented, "Today marks a significant milestone in our journey to establish fully integrated lithium operations in northwestern Ontario. We are pleased to see support for upstream critical minerals processing comparable to the commitments provided to the downstream manufacturing sector in Ontario. We appreciate the support from the federal and provincial governments and look forward to continuing to collaborate as we mobilize Canada's critical mineral advantage—starting in Northern Ontario."
The project is expected to enhance domestic production of lithium hydroxide, supporting the electric vehicle and energy storage markets. Market analysts have projected that as demand for lithium will increase significantly in the coming years.
More information is posted on www.FrontierLithium.com.
NOTE OF CLARIFICATION FROM COMPANY:
Frontier Lithium wishes to clarify, at the request of The Canadian Investment Regulatory Organization, the recently announced disclosure regarding proposed federal and provincial government funding for the Company's proposed lithium conversion facility in Thunder Bay, Ontario. Letters of Intent (LOI) for the proposed funding were provided to the Company by each of the federal and provincial government's. The LOIs are non-binding and serve as an initial step in ongoing discussions with the respective government agencies. The LOIs express an interest and intent by the parties to work towards completing a final term sheet but do not constitute a legally binding agreement. While discussions between the parties are ongoing, there is no guarantee or assurance that final agreements will be reached and/or funding will be provided to the company be either level of government.
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