From Mine to Market
Ontario’s critical minerals and the EV revolution
Recognizing the growing demand for critical minerals, the federal government announced up to C$8.4 million in conditionally approved CMIF funding for five critical mineral infrastructure development projects in the Sudbury and Timmins regions. This funding is crucial, as many critical mineral focused juniors are not enjoying the luxury of steadily rising commodity prices, unlike their gold-focused counterparts. “Raising capital for certain critical minerals like lithium, graphite and nickel has become challenging due to slower-than-expected EV adoption and a drop in the prices of those commodities,” said Theo Yameogo, EY Canada & EY Americas mining and metals leader, Ernst & Young.
Despite the poor outlook for the short-term, the long-term fundamentals remain solid; climate change continues, and the world will have no choice but to make the switch to green energy. “It seems that investor sentiment for battery metals is low now, with a short-term focus prevailing over the long-term outlook. Battery metals are vital not only for electric vehicles but also for energy storage and renewable energy infrastructure, and applications that could drive demand even more than electric vehicles,” said Brendan Yurik, CEO, Electric Royalties.
The pace of adoption and innovation in the EV and green energy sector is being mirrored in the upstream, with critical mineral miners pioneering novel extractive techniques and processing technologies every year. The financing crunch and competition from miners in jurisdictions with lower operating costs is perhaps another contributor to the sometimes-radical approaches Ontario’s critical mineral miners are taking. “In Ontario, we have seen a significant demand for out-of-the-box thinking, particularly in the critical minerals space. One example of this is helping Generation Mining realize approximately C$89 million in capital savings on a project. We are also working with Vale Base Metals to de-bottleneck the Salobo mine and implement coarse particle flotation. This demand for cost-effective, fit-for-purpose solutions is high,” shared Zimi Meka, co-founder and CEO, Ausenco.
“Demand from China for critical minerals is weaker than expected, which pushes down the price and creates uncertainty for investors.”
Kris Homer, VP, North America, Mining & Minerals, Wood
On the shores of Lake Superior, Generation Mining continues to advance its Marathon palladium-copper project. In 2024 the company managed to secure the final federal permits required to move forward with construction and is awaiting the final three provincial permits. “The Marathon project is currently one of the only advanced, permitted, critical mineral development projects in North America. It is on the cusp of being the only copper-PGM mine that can commence construction in the next 12 months,” shared Jamie Levy, president and CEO, Generation Mining.
Further west on Superior’s shoreline, Clean Air Metals is advancing its flagship Thunder Bay North (TBN) PGE and copper project, having completed a successful 1,700 m drilling program over the summer. Mike Garbutt, Clean Air Metals’ president and CEO, outlined the company’s next steps: “Our strategy is to continue down the development path and to derisk the project over the next year by moving to advanced exploration using our available cash with a goal to be in the position to execute a bulk sample in 2026. We will be restarting some studies and will hopefully put out a PEA in 2025.”
Another contender vying to be Ontario’s next critical mineral mine is Green Technology Metals (GT1) with its flagship Seymour lithium project, aiming for an FID in 2025. The company has plans to add value to the project by constructing a lithium conversion facility in Thunder Bay, aligning with Ontario’s critical minerals strategy of building up a made-in-Ontario supply chain for EVs and battery manufacturing. “We recently secured nearly C$6 million in conditional funding from Ontario’s Critical Minerals Infrastructure Fund (CMIF) to upgrade infrastructure for the Seymour project. We have been in close contact with agencies like Natural Resources Canada and the Strategic Innovation Fund, which are eager to support upstream development. While much of the initial funding has gone toward midstream and EV manufacturing, we are seeing a shift in focus to mining production, especially in northwestern Ontario,” said GT1’s managing director Cameron Henry.
“Significant transactions such as Rio Tinto’s US$6.7 billion acquisition of Arcadium Lithium continue to take place. We are noticing more consolidation in the industry as a result of an attractive long-term risk-reward profile on lithium.”
Ernie Ortiz, President and CEO, Lithium Royalty Corp
In addition to the CMIF funding, GT1 received a further C$100 million from Export Development Canada to advance Seymour and, much like Canada Nickel, signed an agreement with a Korean battery maker to bring in financing and expertise. “Our partnership with EcoPro gives them the right to purchase up to 35% of Seymour and Root, providing a cornerstone for funding. We are also working on a PFS for a lithium conversion facility, with a potential JV with EcoPro, sharing a 60/40 split in their favor. These efforts are supported by discussions on syndicated debt with government agencies and commercial banks,” shared Henry.
Thunder Bay will serve as an ideal location for future projects like GT1’s lithium conversion plant, as it is home to Canada’s furthest inland port. The Port of Thunder Bay’s CEO Chris Heikkinen shared how the port is preparing itself for an anticipated uptake in demand from the many development projects in the region: “We received C$6.7 million in federal funding aimed at enhancing asset offerings and services. We are expanding our lay-down area, investing in several additional acres of exterior storage and staging areas for cargo. This is an area of high interest to the mining industry as it provides flexibility for companies importing equipment and infrastructure, allowing them to be held in the Port of Thunder Bay until they are needed at the mine site.”
“While building value-added processing facilities aims to create better jobs, we risk having underutilized plants without an adequate raw material supply.”
Brendan Yurik, CEO, Electric Royalties
Like GT1, Frontier Lithium has also taken the vertically integrated approach with its PAK lithium project and chemical plant. Having secured CMIF funding from the government, Frontier Lithium also relied on the Canadian government’s good relations with Japan to secure a JV with carmaker Mitsubishi on the Seymour project, which is slated to deliver a definitive FS in Q1 2025. “Partnerships with global players bring both financial investment and expertise, helping scale operations and integrate into global supply chains. These collaborations validate Canada’s strategy of reducing dependency on traditional markets like China, and advancing toward a robust and competitive critical minerals ecosystem,” said Trevor Walker, president and CEO, Frontier Lithium.
In just the last four years, Ontario has attracted over C$45 billion in new investments from global automakers, parts suppliers and EV battery manufacturers. If even a fraction of these projects come to fruition, the province’s critical mineral miners need not look far to find willing buyers.
Article header image courtesy of Miller Technology