As part of its strategy to become a vertically integrated lithium producer, Avalon Advanced Materials (TSX: AVL | OTCQB: AVLNF) has acquired an industrial site in Thunder Bay, Ontario which has an existing road, rail, deep-water port, and utilities services for its planned midstream lithium-hydroxide (LiOH) processing facility.
“In addition to accelerating onshore EV production capacity, our plan will help achieve a geostrategic priority for Canada and other G7 nations to establish stable, secure access to refined raw material,” Avalon president Zeeshan Syed said.
“While there is more work to do with our government and community partnerships, we are confident we will help close the gap between increasing demand and domestic supply of this key resource and help fortify North American energy security.”
When complete, the integrated project will create an estimated 500 jobs in Thunder Bay and Kenora, enable broader development of northwestern Ontario’s lithium assets, and connect lithium assets in the north with regional processing capacity thus leading to a decreased life-cycle carbon footprint compared to producers who ship raw materials to processing facilities overseas.
The Thunder Bay site acquisition follows Avalon entering a strategic partnership with Antwerp-based SCR-Sibelco NV.
The agreement with Sibelco secured C$63M of new investment to facilitate the development of Avalon’s vision of becoming a vertically integrated lithium producer.
With the finalization of the purchase, Avalon’s focus moves to build upon its relations with First Nations partners, the local community and government. The facility will ensure the long-term security of domestic lithium processing capacity required for Canada’s and North America’s electric vehicle and battery supply chain.
The company also continues to advance discussions with a range of other parties interested to join in the project and help contribute to the province’s industrial competitiveness.
For further information, please visit: www.avalonadvancedmaterials.com
