The Japanese Mitsubishi Corporation has made its first foray into lithium mining, investing 25 million Canadian dollars in a 7.5 per cent stake in a project by Canadian lithium mining company Frontier Lithium in Ontario.
The agreement includes an option to increase this stake to 25 per cent, according to a statement from Mitsubishi. The project aims to commence production of high-quality spodumene concentrates by 2027 and battery-grade chemicals by 2030, with an annual production capacity of 20,000 tonnes of lithium carbonate, enough for nearly 300,000 electric vehicle batteries.
Mitsubishi’s initial investment is primarily intended to finalize the project’s feasibility study, prepare for construction, and secure necessary permits. Based on the CAD 25 million investment for the 7.5 per cent stake, Mitsubishi would need to pay an additional CAD 58.3 million for the remaining 17.5 per cent to reach the 25 per cent ownership.
Mitsubishi Corporation cited the project’s status as one of the largest and highest-quality lithium resources in North America as a key factor in its decision to invest. Additionally, Ontario’s status as an active mining region with abundant hydroelectric power aligns with the project’s goal of serving the North American EV market while minimizing environmental impact. Mitsubishi also noted the potential for further resource discoveries due to Frontier’s extensive land holdings.
Beyond financial investment, Mitsubishi Corporation intends to support the project by sharing its extensive knowledge and expertise in the mining business, accumulated over decades.
It is important to note that Mitsubishi Motors, the car manufacturer, is not involved in this investment. Mitsubishi Corporation and Mitsubishi Motors are separate entities, with the former being a trading company and the latter emerging from Mitsubishi Heavy Industries division in 1970.
