Mitsubishi Corporation acquires stake in Canadian lithium mine
The agreement includes the option to increase this share to 25 per cent, according to a statement from the Japanese conglomerate. The aim of the project is to start producing high-quality spodumene concentrates in 2027 and battery-grade chemicals by 2030. An annual production of 20,000 tonnes of lithium carbonate is expected, enough for the batteries of almost 300,000 electric vehicles.
Based on the CAD 25 million (just under EUR 17 million) for the 7.5 per cent share, Mitsubishi would have to pay CAD 58.3 million (EUR 39.6 million) for the other 17.5 per cent to increase its stake to the 25 per cent mentioned. The current investment is primarily intended to finalise the feasibility study of the project and prepare for the start of construction and obtaining the necessary permits.
According to Mitsubishi Corporation, it decided to make the investment “because the project is one of the largest and highest quality lithium resources in North America”. In addition, Ontario is an active mining region with abundant hydroelectric power, allowing the project to serve the North American electric vehicle market while minimising environmental impact. And Frontier’s “substantial land holdings” could lead to “further resource potential being uncovered”.
In addition to the financial investment, Mitsubishi Corporation also wants to support the project “by sharing the extensive knowledge and expertise in the mining business that it has accumulated over the past decades”.
The car manufacturer Mitsubishi Motors is not mentioned at all in the press release – for one simple reason. There are a large number of companies in Japan that emerged from the Mitsubishi conglomerate, which was broken up after the Second World War. Although these companies continue to use the brand name and logo, they are mostly legally independent of each other. The Mitsubishi Corporation is a trading company. The vehicle manufacturer Mitsubishi Motors only emerged from the Mitsubishi Heavy Industries division in 1970.
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