By Katie Woychyshyn

As governments work to restart the global economy, environmental activists are calling for a green economic recovery. With climate change

at the forefront of politics, many countries are looking into ways to reduce their carbon footprint and increase their societal shift to green technology. This shift is an opportunity for Canadian miners to produce materials critical to a green future – especially when it comes to materials like lithium.

In recent years, the main use of lithium has shifted.

A 2018 US study found that industrial applications, such as glass, ceramics, lubricants, and casting powders used half of all globally produced lithium.1 However, a study conducted in 2020 found that more than half of all global lithium was used for battery materials – in particular, the lithium-ion battery.2

As you are reading this article, you are likely within steps of a lithium-ion battery – there may even be one in your pocket. The lithium-ion battery is the leading battery in everyday items like smartphones, laptops, power tools, cameras, tablets, and scooters. It is also the leading battery used in hybrid/electric vehicles. Its popularity is due to its long lifespan and low price, but it also has higher energy density and lower self-discharge rates in comparison with other batteries on the market.3

In 2020, the global lithium-ion battery market reached a value of US$34.1 billion and is expected to continue growing.4 The World Bank Group found that the annual demand for battery materials such as lithium is expected to increase by nearly 500% over the coming three decades.5

Lithium in Canada

Canada is in a good place when it comes to the potential for lithium. Canada actually hosts 4% of the world’s total lithium deposits. In 2017, the Canadian Energy Regulator estimated that Canada had approximately two million tonnes of lithium resources, though there was potential for more to be discovered.

Canada’s lithium deposits are spread throughout the country, and though Quebec had the only producing lithium mine before 2015, companies are flocking all over Canada in hopes of becoming part of the lithium supply chain. The examples that follow are only some of the companies getting in on the market in the Northwest Territories, Nunavut, Saskatchewan, Manitoba, and Ontario.

In 2018, Gaia Metals Corp. (formerly 92 Resources Corp.) optioned their lithium property to FAR Resources Ltd. The 1,849-hectare Hidden Lake project is just north of Yellowknife, in the Northwest Territories. According to FAR Resources, Hidden Lake hosts lithium-bearing pegmatite dykes that are part of the larger Yellowknife pegmatite district. FAR Resources calls this district the largest lithium resource in Canada and so far the company has seen success. All holes intersected at Hidden Lake were found to have significant lithium mineralization.

In Nunavut, Dixie Gold Inc. is mining for Lithium at the Phoenix Lithium project, which is approximately 70 km southeast of the Diavik Diamond Mine and hosts two lithium-rich pegmatites. Dixie also is in possession of the Torp Lake Lithium project, located 35 km from tidewater in the North Slave region.

According to a press release, 2021 saw both projects enter the drilling phase. “Holding both projects under long-term leases delivers us significant latitude in terms of timing and optionality to advance what our company believes are two of the most prospective lithium exploration projects in Canada,” stated Ryan Kalt, Chief Executive Officer at Dixie Gold.

Lithium exploration entered Saskatchewan in mid-2020, when Prairie Lithium Corp. and LiEP Energy Ltd. partnered on a new two-stage pilot project to produce lithium hydroxide from Saskatchewan oilfield brines.

“PLCM Joint Venture is excited to begin stage one of the pilot operation in Saskatchewan this summer,” Prairie and LiEP’s President and CEO Zach Maurer and CEO Haafiz Hasham said in a press release.6 “We believe that Saskatchewan has the potential to be a global player in the production and chemical processing of lithium, and both companies are thrilled to be working toward proving that potential.”

In Manitoba, New Age Metals Inc. is set to drill for an area near Cat Lake, which is roughly 180 km northeast of Winnipeg. According to the Winnipeg Free Press, it will be the first of their seven projects in the province to progress to this point, but the company has the largest area staked in the southeastern region of the province for lithium mining.7

“Lithium didn’t really kind of get exciting again until it was almost January, February of this year,” New Age Metals CEO Harry Barr told the Winnipeg Free Press.8 “Part of that is the need around the world. Part of it is the fact that lithium prices have increased fairly dramatically this year again, and all the talk of both battery storage and more importantly, electric vehicles.”

There is also an excitement around Snow Lake Resources’ Thompson Brothers Lithium property, currently in the discovery stage. The property encompasses 56 km2 and sits approximately 20 km east from Snow Lake.

Finally, Ontario is seeing a lot of action as companies stake claims at Electric Avenue, the largest land package hosting lithium-bearing pegmatites in Ontario. That is where Frontier Lithium Inc. hosts the PAK Lithium Project, where four spodumene-bearing pegmatites have been discovered on still largely unexplored land.

“Ontario is blessed with its Electric Avenue, North America’s newest emerging premium lithium mineral district that is host to four discoveries, two of which are the continent’s highest grade and lowest impurity lithium deposits,” said Trevor Walker, President and CEO of Frontier Lithium, at a virtual press event.9 “By leveraging the Electric Avenue resource as a base and working with the peoples and skills of the north, we will provide a ‘made in Ontario’ solution that will be the ‘north star’ of sustainable development practices.”

Other companies are focusing on Electric Avenue as well. On April 7, 2021, Musk Metals Corp. acquired 100% interest in the Pakeagama Lithium claims, located in the Electric Avenue pegmatite field. The property consists of four mining claims and is adjacent to Frontier Lithium’s claim group.10 It is a site where many junior miners are looking for a way forward.

In January, Prime Minister Justin Trudeau and Joe Biden, President of the United States, committed to building an EV supply chain between the two countries.11 The move has been speculated as an effort to strengthen North American mining while loosening China’s monopoly on battery materials.

On March 8, 2021, the US Department of Commerce held a closed-door virtual meeting with more than 30 miners and battery manufacturers – big names, including Tesla Inc., Talon Metals Corp, and Livent Corp. – to discuss ways to boost Canadian production of electric vehicle (EV) materials, according to documents obtained by Reuters.12

Days later, Natural Resources Canada (NRCAN) released a list detailing 31 critical minerals needed to support the transition to a low-emissions global economy. These 31 minerals had three commonalities: they are produced in Canada, are essential to domestic industry and security, and have the potential to support secure and resilient supply chains to meet global demand.13 NRCAN stated that the list provides greater certainty and predictability to industry, investors, provinces and territories, and Canada’s international partners on Canada’s mineral priorities.

“Demand for minerals and metals continues to grow with an increasing focus on critical minerals – vital in aerospace, healthcare, telecommunications and an array of clean technologies such as solar panels and electric car batteries,” stated Pierre Gratton, President and CEO of the Mining Association of Canada, in response the critical minerals list. “We’re confident that, with Canada’s leadership in sustainable mining standards and the government’s commitment to critical minerals development, the mining sector has the tools, skills and support to provide the responsibly sourced minerals vital to industries in Canada and around the world.”

Canada’s lithium market is far from steady, but as provinces consider opening a lithium-processing facility, many are optimistic about the future. For example, Avalon Advanced Materials of Toronto signed a letter of intent with Fort William First Nation to collaborate on the development of a lithium battery materials refinery located in Thunder Bay, ON.

“Now that there’s all this new interest in establishing these lithium battery material supply chains, and the manufacturing capacity here in Ontario for electric vehicles, opportunity is obviously knocking to be able to get that supply chain started,” said Don Bubar, President and CEO of Avalon.

References

1 Jacobs, Jay, and Pedro Palandrani. “Lithium, Explained.” Web log. Global X (blog), January 21, 2020. www.globalxetfs.com.

2 “Lithium, Lithium Minerals, and Lithium Chemicals.” IHS Markit, 2021.

3 “Global Lithium-Ion Battery Market Report 2021: A $34.1 Billion Market in 2020 - Forecast to 2026 with Focus on Consumer Electronics, Electric Vehicles, Energy Storage.” Intrado GlobeNewswire, May 6, 2021. Research and Markets. www.globenewswire.com.

4 Ibid.

5 “Mineral Production to Soar as Demand for Clean Energy Increases.” The World Bank, May 11, 2021. The World Bank. www.worldbank.org.

6 “New Lithium Production Project In Saskatchewan.” Saskatchewan.ca, June 3, 2020. The Government of Saskatchewan. www.saskatchewan.ca.

7 Lawrynuik, Sarah. “Lithium Boom Just Getting Started.” Winnipeg Free Press, March 20, 2021.

8 Ibid.

9 “Frontier Lithium: Ontario Takes Steps to Become Global Supplier of Critical Minerals.” Junior Mining Network, March 10, 2021. Frontier Lithium Inc. www.juniorminingnetwork.com.

10 “Musk Metals Acquires the Pakeagama Lithium Claims in the ‘Electric Avenue’ Pegmatite Field, Northwestern Ontario.” Intrado GlobeNewswire, April 7, 2021. Musk Metals. www.globenewswire.com.

11 “Prime Minister Justin Trudeau Speaks with the President of the United States of America Joe Biden.” Government of Canada, January 22, 2021. www.pm.gc.ca.

12 Scheyder, Ernest, and Jeff Lewis . “US Looks to Canada for Minerals to Build Electric Vehicles - Documents.” Reuters, March 18, 2021.

13 “Canada Announces Critical Minerals List.” Government of Canada, March 11, 2021. www.canada.ca/en/natural-resources-canada/news/2021/03/canada-announces-critical-minerals-list.html.