Mitsubishi Corporation

Press Room

March 5, 2024
Mitsubishi Corporation

Participation in PAK Lithium Project in Canada

Mitsubishi Corporation (“MC”) is pleased to announce that it has entered into a binding agreement with Frontier Lithium Inc. (“Frontier”), a Canadian lithium mining company, to form a new joint venture company (“JV”) dedicated to developing the PAK Lithium Project (“Project”) located in Ontario, Canada. MC will acquire a 7.5% equity interest in the JV in exchange for cash considerations of 25 million CAD (“Strategic Investment”). MC also obtains the right to increase its equity share to 25%.
Since the first drill program that indicated significant lithium potential in 2013, Frontier has continued to conduct exploration activities to increase its resource steadily, and as a result, the Project is expected to have a mine life of over 20 years, with annual production of approximately 20Kt of lithium carbonate equivalent (equating to almost 300K electric vehicles).
MC has decided on this Strategic Investment as its first ever investment in a lithium mine with the view that the Project boasts among the largest and the highest grade lithium resources in North America. Also, Ontario is an active mining jurisdiction that has abundant hydroelectric power, enabling the Project to serve the North American electric vehicles market while minimizing environmental impact. Furthermore, future drilling programs in the substantially large land position that Frontier owns may lead to unveiling further resource potential.
The proceeds from the Strategic Investment will be primarily used to complete the feasibility study of the Project and to prepare for obtaining permits required prior to the commencement of construction.
MC will contribute to the development of the Project by sharing the extensive knowledge and expertise in the mining business that it has accumulated over the past decades. The Project aims to commence production of premium spodumene concentrates by 2027 and the production of battery grade chemicals by 2030.
Lithium is essential for electrification and de-carbonization, as it is a critical raw material used in manufacturing lithium-ion batteries for electric vehicles. While mid-to-long-term demand for lithium is expected to grow strongly with the robust demand growth for batteries, there are fears that supply growth may not be able to keep up with such demand. MC believes that the Project can play an important role in addressing these supply-side concerns.
In the "Midterm Corporate Strategy 2024 – Creating MC Shared Value" released in May 2022, MC outlined its growth strategy of accelerating energy transformation, including investment in lithium resources. Beyond this Strategic Investment, MC remains committed to further securing a stable and sustainable supply of battery minerals.
■Transaction Scheme
■Overview of Frontier Lithium Inc
Company Name     
 Frontier Lithium Inc.
 Sudbury Canada
 1995(renamed from Houston Lake Mining Inc. in 2016)
 Trevor Walker
Stock Exchange
 Toronto Venture Stock Exchange
■Overview of PAK Lithium Project *
 Frontier Lithium Inc. 100%                           
Mining Method
 Open Pit
 58.5Mt (1.50%Li2O)
Production Start
 Around 2027
Annual Production
 20,000t LCE (equating to almost 300K electric vehicles)
Life of Mine
 Not less than 20 years                     
*Based on the pre-feasibility study released in May, 2023 (URL:

Based on the Three Corporate Principles, which serve as MC’s core philosophy, MC has continued to grow together with society by contributing to the sustainable development of society through its business activities while pursuing value creation. MC’s revised “Materiality” was announced in Midterm Corporate Strategy 2024 as a set of crucial societal issues that MC will prioritize through its business activities, towards the strategy’s goal of continuous creation of MC Shared Value (MCSV). Guided by this Materiality, MC will continue to strengthen its efforts towards sustainable corporate growth. Out of the six material issues relating to “Realizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually”, this project’s activities particularly support “Contributing to Decarbonized Societies ”.

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