Frontier Lithium Unveils Economic Study for the PAK Lithium Project

Executive Summary

• Frontier Lithium released a third‑party socioeconomic impact study (Ernst & Young) quantifying the projected economic, employment and tax benefits of its PAK Lithium Project over a 33‑year life.
• The study forecasts national GDP contributions of $931 M (construction) and $93 M (operations) for the mine/mill, plus additional impacts from the downstream lithium conversion facility in Thunder Bay.
• Highlights include creation of up to 1,232 full‑time equivalent jobs during construction and sustained employment of over 500 FTEs during operations, with significant tax revenue generation at federal, provincial and regional levels.

Key Details

• Study Scope: Third‑party socioeconomic impact analysis by Ernst & Young LLP based on the latest Mine & Mill Definitive Feasibility Study (DFS) and Pre‑Feasibility Study (PFS) conversion facility data.
• Construction Phase – Mine & Mill (3 years):
• National GDP impact: $931 M
• National employment: 1,232 FTE jobs
• Annual national tax revenue: $75 M
• Ontario GDP impact: $708 M; 917 FTE jobs; $38 M provincial tax revenue
• Northwestern Ontario GDP impact: $188 M; 568 FTE jobs; $19 M local tax revenue
• Operational Phase – Mine & Mill (30 years):
• National GDP impact: $93 M per year
• National employment: 535 FTE jobs
• Annual national tax revenue: $4.9 M
• Ontario GDP impact: $75 M; 390 FTE jobs; $2.5 M provincial tax revenue
• Northwestern Ontario GDP impact: $23 M; 162 FTE jobs; $1.5 M local tax revenue
• Construction Phase – Lithium Conversion Facility (Thunder Bay, 2 years):
• National GDP impact: $575 M
• National employment: 931 FTE jobs
• Annual national federal tax revenue: $48.8 M
• Ontario GDP impact: $468 M; 814 FTE jobs; $40.0 M provincial tax revenue
• Northwestern Ontario GDP impact: $134 M; 557 FTE jobs; $15.0 M local tax revenue
• Operational Phase – Conversion Facility (30 years):
• National GDP impact: $89.5 M per year
• National employment: 415 FTE jobs
• Annual national federal tax revenue: $6.7 M
• Ontario GDP impact: $69 M; 304 FTE jobs; $3.0 M provincial tax revenue
• Northwestern Ontario GDP impact: $23.4 M; 187 FTE jobs; $2.3 M local tax revenue
• Broader Benefits: Workforce development, Indigenous and community employment opportunities, environmental sustainability initiatives, strengthening of Canada’s critical‑minerals supply chain, alignment with national net‑zero and defense strategies.
• Joint Venture Structure: Frontier Lithium (92.5%) and Mitsubishi Corporation (7.5%).

Notable Quotes

“The PAK Lithium Project will deliver meaningful benefits to Northwestern Ontario, driving economic growth, employment, and support for local businesses… supporting multiple economic and national security objectives…” – Trevor Walker, President & CEO, Frontier Lithium.

“Frontier Lithium's PAK Project is more than a mining operation. It is a strategic investment that strengthens Canada’s critical minerals supply chain, enhances national resiliency, and drives competitiveness while unlocking long‑term economic growth.” – Mauricio Zelaya, Partner & National Economics Leader, EY Canada.