Canada’s Lithium Boom: New Mines and Growing Output

Canada continues to strengthen its position in international lithium markets. The country has introduced a variety of measures, including tax benefits and green energy options, to help spur this growth and expand its operations. Here’s how Canada’s lithium production sector continues to provide economic growth and reduce reliance on imports for this critical mineral.

Canadian Lithium Statistics

Canada is in the midst of a lithium renaissance. The country has experienced a surge in production brought on by growing demand for this crucial component of modern electronics. Impressively, Canada’s lithium mining output has increased from 3,240 metric tons in 2023 to 4,300 metric tons in 2024. Even more telling is that some analysts predict a 150% increase in production in 2025 alone.

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New Lithium Deposits and Exploration Activity in Canada

There are many factors driving these predictions. Among them is the recent discovery of six potential new mining zones. Currently, mining operations are centered in Quebec, Ontario, and Manitoba. Canada currently has hundreds of lithium exploration and development projects, though only a small subset are in active production. However, the latest discovery would open the door to mining operations in the Georgia Lake rare-element district.

Jackpot, Ontario

The new mining locations are in Jackpot, located in northern Ontario, Canada. This advanced exploration project began in 1955 after lithium was first discovered in the region. Since its launch by Conwest Exploration Company Ltd., the location has changed hands several times.

Significant efforts have been made to determine the extent of the deposits in this location. In 2019, a team used advanced LiDAR to help determine optimal locations within the site to start new drill operations.  Notably, this region has a rich history filled with mining lore and success.

Jackpot is around 72.6 sq miles and has defined resources for two potential open pits, with exploration underway to identify more. Keenly, bench tests revealed that many areas showed pegmatite with Spodumene deposits; a green crystal, Spodumene is one of the primary rocks capable of hosting lithium minerals.

6 New Mining Locations

After conducting extensive surveys, engineers have determined 6 potential mining sites within the mineral rock region. These new locations would be ideal for operations for several reasons. Primarily, because they would be located close to the existing infrastructure and could leverage the same logistics network, making it easier to extract the mineral and host operations.

P&E Mining Consultants Inc.

P&E Mining Consultants conducted the survey that revealed the six potential new mining sites. This Canadian geology and engineering firm used a combination of computer modeling and traditional evaluation methods to determine the mine’s future potential.

The researchers surveyed the land and determined that multiple sites had potential. Specifically, the team found a site about 87 miles northeast of Thunder Bay. This mine would provide full accessibility, making it ideal as the first new addition to the mining operations.

Resource Estimates and Lithium Grades

According to their study, the mining operation could hold 3.4 million short tons indicated at 0.85 percent Li2O and 5.8 million short tons inferred at 0.91 percent Li2O. Even more impressive is that the bench test showed that the rock can upgrade to a 6 percent Li2O concentrate.

This upgraded percentage used an algorithm that included an 81.5% recovery. This extraction rate would be achieved using new mining techniques, including heavy liquid separation. Keenly, the estimates were made using grades with inverse distance squared, providing more weight to samples closer to the point of extraction.

Accuracy Determines Profitability

These estimates also take into account a cutoff grade. This grade is the lowest purity economically viable for extractions. When making estimates, slight changes in density can result in total tonnage shifts. As such, the surveyors used a purpose-built algorithm that converted rock mass into bulk density, enabling more accuracy.

Several other factors were taken into consideration when making potential mining estimates. Specifically, the team integrated key factors like the total drill spacing,  recovery tests, refined pit shells, equipment to be used, and other emerging strategies.

Shorten Supply Chains

Canadian officials have been keen to try to secure their domestic logistics. These steps have included building new roadways between mines, converters, and battery plants. Additionally, they have ensured that mines aren’t too far from major highways or are located next to deepwater ports. The goal is to reduce logistic time and keep the door open for future expansion and export needs.

How Canada Is Building a Domestic Battery and Lithium Supply Chain

Canada continues to secure its positioning in the lithium markets. While not in the top 10 producers, the country is a vital component of the North American lithium economy, where it provides US firms with vital components to make batteries and more.

Canada has increasingly taken a leading role in battery development and manufacturing. The country’s unique approach to lithium mining has helped it to stand out as a smart alternative to past mining options that were environmentally unsustainable. Here are some driving factors:

Government Initiatives

The Canadian government has been vocal about its desire to increase domestic battery production. In 2023, the country launched its Critical Minerals Strategy. This maneuver helped to put more focus on critical minerals like lithium and others needed to fuel the EV battery demand.

Canada has even partnered with lithium production firms to help improve results. For example, it helped push through a lithium chemical conversion facility, providing funding under the Critical Minerals Strategy to advance Frontier Lithium’s PAK Project in Ontario.

Innovative Strategies

Impressively, Canada is one of the leading innovators in lithium extraction methods and is one of the greenest lithium producers in the world. Its facilities must adhere to strict environmental standards. As such, they integrate green energy and other advancements like direct lithium extraction (DLE), AI algorithms, and satellite monitoring systems to reduce pollution.

Battery Recycling

Another way the country seeks to improve domestic production is through battery recycling. There are several valuable minerals that get lost when batteries are disposed of improperly. Sadly, this waste has a horrible effect on the environment. Canadian engineers seek to create a circular economy with the ultimate goal of reducing reliance on imports and domestic lithium extraction.

Proximity

One of the biggest reasons why Canada continues to see its lithium sector expand is simply because of its proximity to the US. The US is a major lithium developer, and demand for this mineral is seen as a matter of national security. As such, the administration has put considerable effort into securing direct connections to extraction facilities globally.

Canada’s Major Operating Lithium Mines

Currently, Canada has its lithium extraction efforts focused on a few main locations. The Tanco Mine, located in Manitoba, is one of Canada’s longest-running lithium-bearing operations. Although its ownership and production cycles have changed over time, the modern phase under Sinomine’s Tantalum Mining began in 2014.

The North American Lithium Mining Operations

The North American Lithium mine has been in operation since 2018. It’s located in Quebec and is one of the largest operations in the country. Currently, it’s co-owned by Piedmont Lithium and Sayona Mining. This mining facility has had an interesting past. It was closed in 2018 but reopened in 2023 due to rising demand.

Canadian Lithium Providers

There are several Canadian lithium providers that continue to drive the country’s mineral economy. Firms like Lithium Americas Corp. and Sayona Mining continue to increase their capacities and market positioning globally. Here’s one firm that secured a reputation as a reliable lithium provider.

Lithium Americas Corp

Lithium Americas Corp entered the market in 2007 with the goal to help keep the Western Hemisphere relevant in the lithium space. The company, founded in Vancouver, British Columbia, quickly saw success. Within a few years, it expanded operations across North America.

In 2009, Lithium Americas acquired Lithium Nevada Corp. This maneuver gave it a strong foothold in the US market. Today, the company has a major operation in Thacker Pass, the largest lithium clay deposit in the US. Impressively, reports show 13.7 million tonnes of lithium carbonate in the area.

Today, Lithium Americas Corp is seen as a vital part of national security for both Canada and the US. Its operations are becoming more relevant as the US and Canada both seek to reduce reliance on imports. As such, those seeking access to the lithium sector should consider doing more research on Lithium Americas Corp.

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Future Of Canadian Lithium Mining Efforts

There are several high-level lithium extraction projects in the works in Canada. For example, the country has a commercial production plant ready to launch in Alberta. This massive facility is slated to significantly increase domestic production levels. Specifically, reports estimate it will produce 5,700 metric tons of lithium by 2027. By 2034, this production level is predicted to hit 14,800 metric tons.

Canada Lithium Market Growth | Conclusion

It’s easy to see why Canada would want to strengthen its position in the lithium sector. This valuable mineral is crucial in today’s electronics and military gear. As such, there’s little chance of demand slowing down anytime in the future.

Recognizing this, government officials continue to expand the local market, aiming to build production capacity that rivals the world’s top producers. As such, these six new mineralized zones will bring their goal one step closer to fruition and further cement the country as a major lithium exporter globally.

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