Critical Minerals Infrastructure Fund Invests $6.1 Million in Frontier Lithium’s Ontario Refinery Project

What do electric vehicles, smartphones, and the green economy have in common? They all rely on critical minerals, and Canada has plugged into the future with a $6.1 million investment in Frontier Lithium. 

The Canadian government is bolstering the nation’s critical minerals sector with the announcement of up to $6.1 million in conditionally approved funding for Frontier Lithium Inc. Sourced from the Critical Minerals Infrastructure Fund (CMIF), this investment aims to advance the development of a state-of-the-art lithium refinery in Thunder Bay, Ontario. 

“Our government is working with Frontier Lithium and the federal government to protect Ontario workers and jobs by mining and refining our critical minerals right here in Ontario. The frontline of our battle against Donald Trump’s tariffs starts in northern Ontario with our abundant supply of critical minerals. Frontier Lithium’s interest in expanding their production of strategic minerals in Ontario is yet another vote of confidence in Ontario’s workers and business environment.” 
– Vic Fedeli, Minister of Economic Development, Job Creation, and Trade 

 

Pioneering a Domestic Lithium Supply Chain 

Frontier Lithium’s ambitious project involves constructing a lithium chemicals conversion facility in Thunder Bay, marking a pivotal move toward establishing a fully integrated, made-in-Canada lithium supply chain.  

The proposed refinery will process lithium extracted from the company’s PAK Lithium Project, located in northwestern Ontario. This initiative is poised to create hundreds of full-time jobs, stimulate economic growth in the region, and position Ontario as a leader in the burgeoning electric vehicle (EV) battery market. 

Government Funding and Strategic Partnerships 

The federal government’s financial backing through CMIF underscores its dedication to fostering sustainable critical minerals production. The $6.1 million in funding is allocated for two key projects: advancing Indigenous engagement and conducting engineering studies for a 56-kilometer all-season access road and electricity infrastructure. These projects focus on the environmental and social sustainability of the refinery. 

Furthermore, Frontier Lithium has entered into a joint venture with Japan’s Mitsubishi Corporation, highlighting international interest and collaboration in developing Canada’s critical minerals sector. This partnership aims to leverage Mitsubishi’s expertise and global reach to enhance the project’s success. 

Funding Snapshot: CMIF 

CMIF is a cornerstone of Canada’s Critical Minerals Strategy, with up to $1.5 billion earmarked until 2030 to support clean energy and transportation infrastructure projects vital for the sustainable development of critical minerals. CMIF funding programs offer two primary avenues for support: grants for Indigenous engagement and capacity building, and contribution funding for preconstruction and shovel-ready infrastructure projects. 

This investment in Frontier Lithium aligns with CMIF’s objectives to:  

• Enable the production and expansion of priority critical minerals resources in Canada. 
• Drive economic growth by addressing gaps in clean energy and transportation infrastructure. 
• Advance reconciliation with Indigenous Peoples by supporting partnerships and ensuring community benefits. 

By focusing on these goals, CMIF aims to position Canada as a global leader in the critical minerals sector, essential for the transition to a green and digital economy. 

The conditional $6.1 million investment in Frontier Lithium’s Thunder Bay refinery project represents a significant milestone in Canada’s journey toward establishing a robust and sustainable critical minerals industry. Through strategic government funding, international partnerships, and a commitment to environmental and social responsibility, this initiative sets the stage for Canada to become a key player in the global EV battery market and the broader green economy.