Canada and Ontario to Fund Frontier Lithium's Conversion Plant in Thunder Bay

Frontier Lithium's

New facility to boost domestic lithium salt output and shield Ontario’s critical mineral sector from U.S. trade pressures.

Frontier Lithium, a Canadian pre-production mining firm, announced that both the Ontario provincial government and the Government of Canada plan to financially support its upcoming lithium conversion facility in Thunder Bay.

While the exact investment amount has not been disclosed, the company said the combined support will cover a “significant portion” of capital expenditures required for the project. Once completed, the facility will produce approximately 20,000 metric tonnes per year of lithium salts derived from Frontier’s PAK lithium project.

Lithium Strategy Targets U.S. Tariffs with Domestic Processing

The announcement comes amid renewed trade tensions between the U.S. and Canada. This week, U.S. President Donald Trump reimposed tariffs on Canadian exports, placing pressure on Canada's critical minerals sector.

Vic Fedeli, Ontario’s Minister of Economic Development, stated that processing lithium at home is vital to counteract U.S. tariffs. “The frontline of our battle against Donald Trump’s tariffs starts in northern Ontario,” Fedeli emphasized, citing the province’s abundant supply of critical minerals as a key advantage.

Frontier’s Thunder Bay Project Supports North American Battery Supply Chain

The Thunder Bay facility is part of Canada’s broader strategy to strengthen domestic battery materials production and reduce reliance on foreign processing hubs. With this support, Frontier Lithium will advance its role in the North American EV and energy storage supply chain.

Although Frontier has not revealed total project costs, the backing from both levels of government positions the company to secure financing and accelerate construction timelines.