The Government of Canada and the Province of Ontario have signed letters of intent (LOIs) to support Frontier Lithium’s planned Lithium Conversion Facility in Thunder Bay, Ontario. The LOIs are non-binding and serve as an initial step in ongoing discussions with the respective government agencies.

The LOIs express an interest and intent by the parties to work towards completing a final term sheet but do not constitute a legally binding agreementThe combined government contributions aim to cover a significant portion of the expected capital expenditures required to build the Lithium Conversion Facility. This combined support is contingent upon a number of customary conditions and would be provided once contribution agreements are entered into between the company and the respective agencies.

The proposed Lithium Conversion Facility is planned to convert lithium from the Company PAK mine project into approximately 20,000 tonnes of lithium salts per year. This expected capacity would support the production of batteries for approximately 500,000 electric vehicles per year.

The proposed design of the facility also allow permit the processing of materials from other lithium resources in Canada and abroad. Lithium is a critical component of lithium-ion batteries, particularly for electric vehicles and energy storage systems (ESS). The Lithium Conversion Facility will be the first of its kind in Canada, significantly strengthening North America’s energy and critical minerals supply chain while reducing the dependence on foreign lithium dependence.