Mitsubishi Corporation has partnered with Frontier Lithium Inc. to form a new joint venture to develop the PAK Lithium Project in Ontario, Canada. Particularly, Mitsubishi will acquire 7.5 percent stake in the JV valuing CA$25 million. Mitsubishi also obtained the right to increase its equity share to 25%.

Frontier, a Canadian lithium mining company, conducted the first drill in 2013 and already showed significant potential. Since then, it has continued to conduct exploration activities. As a result, the Project is likely to yield a mine life of over 20 years, with annual production of approximately 20Kt of lithium carbonate.

Complements Demand of EVs, Other Applications

Mitsubishi has decided on this Strategic Investment as its first-ever investment in a lithium mine. Specifically, the Project is among the largest and the highest-grade lithium resources in North America.

Also, Ontario is an active mining jurisdiction that has abundant hydroelectric power. Thus, enabling the Project to serve the North American electric vehicles market while minimizing environmental impact. Furthermore, future drilling programs in the substantially large land position that Frontier owns may lead to unveiling further resource potential.

The proceeds from the Strategic Investment will complete the feasibility study of the Project before the commencement of construction. Mitsubishi will contribute to the development of the Project by sharing extensive knowledge and expertise in the mining business. moreover, the Project aims to commence the production of premium spodumene concentrates by 2027 and the production of battery-grade chemicals by 2030.

Lithium is essential for electrification and de-carbonization. Particularly, it is a critical raw material used in manufacturing lithium-ion batteries for electric vehicles. While mid-to-long-term demand for lithium will grow strongly with the robust demand growth for batteries, there are fears that supply growth may not be able to keep up with such demand.

–22 March 2024-

*This is an English translation of a Japanese article originally published in the March 7, 2024 issue of Dempa Shimbun Daily.