THUNDER BAY — Much work remains to be done, but the president and CEO of Frontier Lithium was all smiles Wednesday while talking about prospects for a lithium conversion facility on Thunder Bay's Mission Island.
"It's really transformational, and puts Thunder Bay and Northern Ontario on the map," Trevor Walker said in an interview from his office in Toronto.
He was speaking a day after the federal and Ontario governments announced they might each contribute up to $120 million – if the project proves viable.
Walker said the company has invested over $100 million to date toward the development of lithium deposits at its PAK project about 175 kilometres north of Red Lake.
He pegged the cost of the processing facility in Thunder Bay at approximately $700 million.
Both governments have provided Frontier Lithium with Letters of Intent to support the project, but these are non-binding, and serve only as an initial step in ongoing discussions among the parties.
Walker called Ontario and Canada's interest in the project a game-changer and a great vote of confidence in the company.
The lithium conversion plant would employ about 200 people.
"There's very little lithium production that takes place in Canada," Walker said. "With regards to the electric vehicle storage market, it's really important for Canada to develop lithium production and the refining of materials to build that supply chain. The last couple of years have been really exciting with over $45 billion attracted for battery production and electric vehicle production in southern Ontario. This is that second part of the strategy, to bridge the north and the south, and to start to leverage the Canadian advantage."
Several other mining firms are also trying to develop lithium deposits in Northwestern Ontario, and are proposing processing facilities in either Thunder Bay or Red Rock.
When he was asked if the governments' interest in the Frontier project gives it an advantage, Walker replied "We're in it together" but added "It's really critical, given the experience we have in Northern Ontario, to have an anchor resource. So we're really fortunate at Frontier to have the PAK lithium resources."
According to the company, these are North America's highest-grade lithium deposits, and the second largest by size.
Frontier has said the proposed design of its Thunder Bay processor would allow it to work with materials from other lithium resources in Canada and abroad.
"Thunder Bay is a prime location...we're very much open to potential collaboration," Walker stated.
As for timelines, he said the company is close to pulling the trigger on feasibility studies required "to turn support and intent into reality."
Walker expects that within a maximum of 18 months, the company will be in a position to make a final investment decision and unlock the proposed government funding.
If a decision is made to proceed, he said the company's goal will be to start production of lithium salts for batteries by 2030.
