Australian lithium company selects new site for Thunder Bay refinery

Thunder Bay - An ambitious Australian lithium producer is considering a new site in Thunder Bay for a refinery in northwestern Ontario.

Green Technology Metals is surveying a brownfield site on the city's waterfront to assess its suitability for a lithium chemical conversion plant.

The company, headquartered in Perth, has shifted its focus from the former Cascades paper mill site at the city's north end to the Mid-Continental Terminal near a group of grain elevators on Maureen Street in the downtown area.

Green Tech said in a Feb. 5 press release that it has signed a letter of intent with the owner, a numbered company, for exclusive access to the site for due diligence over the next 12 months.

Green Tech is an ambitious company and one of four emerging lithium companies in the region, aiming to become Ontario's first lithium miner and processor.

The company holds two advanced lithium deposits in the northwest and plans to bring them into production.

Its Seymour project is located near Armstrong, north of Lake Nipigon. The Root project is northeast of Sioux Lookout. Both deposits would feed the Thunder Bay plant.

The lithium hydroxide conversion facility takes lithium concentrate processed at the mine and converts it into battery-grade lithium hydroxide products demanded by electric vehicle manufacturers.

The Mid-Continental Terminal covers 81 hectares (200 acres) and is a transshipment site with marine and highway access, plus a rail spur to the site, municipal water, natural gas and electrical connections.

It is a historic industrial site in Thunder Bay, used as a coal dock by Canadian National Railway in the 19th century, and later operated as a large forest products operation by Northern Wood Preservers and Northern Sawmills.

With that in mind, Green Tech hopes to conduct geotechnical investigations over the next 12 months, checking the site for any concerning environmental contaminants, before reaching a formal agreement with the owner and starting the government permitting process.

To advance the refinery, Green Tech has a strategic agreement with EcoPro Innovation, a global battery technology giant headquartered in South Korea, with hopes of bringing it in as a joint venture partner in the future.

A one-tonne bulk sample from the Seymour project is being tested at EcoPro's plant in Pohang, South Korea, with a goal of producing lithium hydroxide product by mid-year.

Green Tech also said a pre-feasibility study will be released later this year, which will further clarify the specifics of the refinery.

If everything goes as planned, the company expects to make an investment decision on the refinery by the end of 2026, with construction starting in late 2028 or 2029 after permits and social approvals.

Green Tech's mine and refinery strategy has resonated with the federal government.

Ottawa has expressed support and signed a letter of intent for up to $100 million in federal funding. On the provincial side, "active discussions" are underway with Invest Ontario and the Strategic Innovation Fund to support the refinery and the Seymour project.

Some project support could come from the South Korean government and other lenders.

During a recent trip to Seoul, Green Tech management met with the Export-Import Bank of Korea (KEXIM), a government-run export credit agency, to discuss project financing that could involve commercial bank lenders. KEXIM helped EcoPro with a similar project in Hungary.

The South Korean government has also proposed a $29 billion funding pool under the Economic Security Supply Chain Stabilization Framework Act to provide loans for large projects and promote economic cooperation with other countries.

Green Tech Managing Director Cameron Henry said in a statement that the strategic partnership with EcoPro "has facilitated progress on the Thunder Bay lithium conversion facility, with several key work streams advancing rapidly."

"We have identified a preferred site for the conversion facility in Thunder Bay and are currently conducting detailed due diligence. In parallel, significant progress has been made on the facility's engineering, leveraging EcoPro's proven expertise and experience."

While 2024 was a slow year for global EV and lithium demand, Henry said they are confident in the long-term demand for the mineral commodity.

"The completed and ongoing work reflects our commitment to advancing Ontario's lithium supply chain."

Source: https://www.tbnewswatch.com/local-news/australian-lithium-player-selects-new-site-for-proposed-thunder-bay-refinery-10199918