Frontier Lithium has entered into a joint venture with Mitsubishi Corporation to develop the first fully integrated lithium mining and processing operation in Ontario, Canada. This partnership, formalized through a definitive agreement on March 2, 2024, aims to accelerate the PAK Lithium Project, encompassing both the mine and a planned lithium chemicals conversion facility.
Mitsubishi has committed to an initial investment of C$25 million for a 7.5% stake in the project. This investment could increase to a 25% interest following the completion of a definitive feasibility study (DFS), with the additional shares priced based on the project’s net value as determined by the DFS. Both companies will also collaborate on securing project financing to cover the development capital costs.
The JV arrangement underscores the project’s significance to the North American electric vehicle (EV) supply chain, marking Mitsubishi’s entry into upstream lithium production. The partnership aims to secure at least 75% of future off-take while focusing on the equity funding for the mine and mill’s initial development and potential downstream expansions.
Trevor Walker, President and CEO of Frontier Lithium, highlighted the milestone this partnership represents towards establishing Frontier as a major lithium supplier in North America. He praised Mitsubishi’s global track record and expressed confidence in the mutual benefits of this strategic partnership.
Kota Ikenishi, General Manager of Mitsubishi Corporation’s Battery Minerals Office, acknowledged the PAK project’s strategic importance for securing lithium supplies for North American markets and expressed enthusiasm for the long-term collaboration with Frontier.
This JV supports the objectives of a recent memorandum of cooperation between Canada and Japan, aiming to strengthen global battery supply chains with sustainable and reliable critical mineral sources, including lithium.
Under the JV terms, Frontier will manage the JV, contributing all project-related assets for a 92.5% interest, while Mitsubishi’s initial 7.5% stake could increase to 25% post-DFS. A Project Development Committee, comprising representatives from both companies, will oversee significant project development decisions. This collaborative effort sets a foundation for bringing the PAK Lithium Project to production, with conditions for the second tranche of funding expected to be met in 2025. 
