Canadian Lithium Venture Will get Mitsubishi Funding

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Lithium, lithium, lithium — that’s what a lot of the electrical car revolution is about now. Dramatic electrical car gross sales development is constructed on dramatic will increase in battery mineral extraction and processing. So, huge EV mineral information is huge EV information … ultimately.

The information this week on this entrance is that Mitsubishi Corp. is partnering with Frontier Lithium on a lithium mine in Ontario. A part of this partnership is that it’s an effort to keep away from challenges sourcing lithium from China. This can be out of concern for long-term sustainable provide, or it might merely be due to the Inflation Discount Act of 2021 within the US, which places an enormous penalty on sourcing battery supplies from China (or some other “entity of concern”). If Mitsubishi needs its EVs to be eligible for the total US EV tax credit score, the corporate can’t use EV battery minerals from China.

“Mitsubishi will make investments 25 million Canadian {dollars} ($18.4 million) as early as spring to purchase a 7.5% stake in a brand new firm established by Canada’s Frontier Lithium, which has pursuits in North American lithium mines. Mitsubishi plans to later increase its stake as excessive as 25%,” Nikkei writes. “The mine Mitsubishi plans to participate in is positioned within the province of Ontario and has over 58 million tonnes of lithium, which might make it the biggest lithium mine through which a Japanese firm holds an curiosity.”

The partnership is not only about mining, although. It’s additionally about refining the lithium in Canada, part of the method that’s dominated by China in the intervening time.

Notably, that is the primary time a Japanese firm shall be concerned in North American lithium manufacturing. And Mitsubishi goes nicely past a small stake in a lithium venture. “Mitsubishi goals to create an built-in provide chain in North America, protecting every thing from mine improvement and operation to ore refining.”

There’s nonetheless rather a lot to do earlier than we get to battery-grade lithium for EVs. In actual fact, this is without doubt one of the greatest challenges within the EV revolutions: it takes years to go from an settlement like this to having lithium for EV batteries, and extra years to have automobiles on the street utilizing these batteries — and there must be stable funding all alongside that timeframe to get to the tip product. On this case, “The companions will conduct feasibility research by 2025, after which manufacturing of industrial-use lithium for glass and ceramics will start as early as 2027. Lithium for EV and storage batteries is slated to begin in 2030.” So, we’re in 2024, and we’re not getting lithium for EV batteries from this mine till 2030.

Nevertheless, as soon as it’s rolling, this lithium venture is anticipated to provide loads of electrical automobiles with the lithium they want. Annual manufacturing is anticipated to be 3,800 tonnes, which is meant to be sufficient for 20,000 tonnes of lithium carbonate, which is meant to provide round 300,000 EVs with the lithium wanted for his or her batteries.

This seems like a fantastic partnership and deal for extra North American lithium extraction and processing, serving to to construct a big financial base round electrical automobiles and the batteries that energy them. Keep tuned for extra information on Mitsubishi, Frontier Lithium, and lithium mining and processing in North America and all over the world.