Frontier Lithium inks deal with Japan’s Panasonic Energy

Trevor Walker, president and CEO of Frontier Lithium, said the MoU is a big step forward. (File)

Frontier Lithium Inc. said Monday that Panasonic Energy of Japan is interested in buying lithium salts it is planning to produce at its PAK Lithium Project in northwestern Ontario beginning in 2030.

Panasonic is interested in “a broader strategic collaboration in support of developing a secure, localized North American battery supply chain,” the company said in a news release March 2.

Frontier and Mitsubishi have already established a joint venture company advancing the integrated PAK Lithium Project in northwestern Ontario.

“The project is designed to support the North American automotive industry’s transition to electrification,” said a news release March 2.

Production to begin in 2030

“An upstream lithium mine and mill and a downstream lithium conversion facility targeting initial production of approximately 20,000 tonnes per annum of battery-grade lithium salts commencing in 2030.”

The PAK Lithium Project is developing one of the largest high-grade lithium reserves in North America, “positioning it as a strategically important source of critical minerals for domestic battery manufacturing,” the company said.

Panasonic Energy is a major global manufacturer of lithium-ion batteries for electric vehicles and energy storage.

Headquartered in Japan, Panasonic Energy operates major battery production facilities in Nevada and Kansas, which supply the North American market.

Under the memorandum of understanding announced Monday, Panasonic Energy “has expressed interest in procuring lithium hydroxide from the PAK Lithium Project.”

Broader collaboration

“The parties also intend to explore broader collaboration opportunities to advance a resilient and sustainable battery supply chain in North America, including potential technical cooperation,” the news release said.

“The parties to the MoU have confirmed their willingness to negotiate a definitive offtake agreement at an appropriate stage of the project, which may include competitive pricing mechanisms subject to further discussions and technical support.

Trevor Walker, president and CEO of Frontier Lithium, said the MoU is a big step forward.

“The PAK Lithium Project is designed to deliver secure, high-quality lithium chemicals to support the region’s growing battery manufacturing capacity,” Walker said in the news release.

“We are pleased to be aligning with globally recognized partners who share our commitment to supply chain resilience, sustainability, and long-term collaboration.”

The PAK Lithium Project is a joint venture between Frontier (92.5 per cent) and Mitsubishi (7.5 per cent), located north of Red Lake, with a downstream lithium conversion facility in Thunder Bay.