THUNDER BAY — Frontier Lithium's proposal to build a lithium conversion plant in Thunder Bay received a major boost Tuesday from the federal and Ontario governments.
First, Ottawa said it's willing to commit up to $120 million to support the development of the facility, which would be located on the site of the former Ontario Power Generation plant on Mission Island.
Natural Resources Minister Jonathan Wilkinson received a round of applause when he made the announcement at the Prospectors and Developers Association of Canada's annual conference in Toronto.
He said the funding, which is conditional, would come from the government's Strategic Innovation Fund.
"This facility will support demand for electric vehicle battery metals, advancing both Ontario's EV framework and critical mineral strategy, and is representative of how when Canada collaborates – industry, Indigenous communities, municipalities, provinces and the federal government – we can make rapid progress."
Wilkinson noted that lithium is a key component in clean-tech manufacturing for a range of different products, and said global demand is skyrocketing.
"This is an incredibly important step for Ontario, and an incredibly important step forward for Canada."
Vic Fedeli, the province's minister of economic development, job creation and trade, announced that Ontario is also considering a $120 million contribution to the Frontier project, subject to further negotiations with the company.
He linked the importance of the project to the new American tariffs of 25 per cent that have just been imposed on everything imported from Canada.
"The frontline of our battle against Donald Trump's tariffs start 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," he said.
Ontario Mines Minister George Pirie added that critical mineral development and processing will help "protect our economy in the face of President Trump's tariffs."
Thunder Bay-area MPs Patty Hajdu and Marcus Powlowski, MPP Kevin Holland, and Mayor Ken Boshcoff were also present for the announcement.
Referring to the proposed processor, Boshcoff said "The construction value plus the long, long range of employment opportunities will go mightily to secure the viability of Thunder Bay for decades to come."
Frontier Lithium CEO Trevor Walker said his company's vision is to become North America's leading supplier of critical minerals, and that the company is grateful for the confidence the federal and provincial government have shown in the company and for their support for the Thunder Bay plant.
"This support will help ensure we maximize the economic benefits of our natural resources...We look forward to collaborating with the government as we continue to progress our project," he said.
Frontier is one of four mining firms looking to develop lithium deposits in Northwestern Ontario, three of which are eyeing Thunder Bay for processing.
The fourth proposes to build a refinery at Red Rock.
The company's PAK Lithium Project, north of Red Lake, is a joint venture with Japan's Mitsubishi Corporation.
Last October, the federal government announced funding of up to $6 million to help Frontier with engineering studies and Indigenous engagement.
