World's First All-Electric Lithium Mine Will Help Build Cheaper EVs In North America

Feb. 10, 2022 7:02 PM ET by Nikesh Kooverjee Industry News / 12 Comments

Snow Lake Lithium hopes to bolster the North American production process.

As electric cars such as the Tesla Model 3 become more and more popular among consumers, the need for lithium is high on the rise. This element is a crucial part of the electric battery but due to its rapidly rising demand, the costs are increasing and supply is waning. Some manufacturers are already looking at solid-state battery solutions to decrease the reliance on this material. In an attempt to combat this issue, Snow Lake Lithium has announced that it will be opening a new mining site in Manitoba, Canada.

The new site will cater specifically to the North American electric vehicle industry. Currently, most manufacturers are importing lithium hydroxide from China, which boasts a 70% market share, and other parts of Asia. With Snow Lake Lithium, an integrated domestic supply chain may prove more beneficial for the automotive manufacturing process. GM recently announced that it would be investing in a similar venture that will see it dig beneath the Salton Sea in Southern California for lithium deposits.

To keep things in the continent, Snow Lake Lithium is working on integrating a joint venture with a local lithium hydroxide processing plant and sourcing partnerships with OEMs or battery manufacturers. The Manitoba location has been described as a strategic position thanks to its proximity to the Artic Gateway railway. This line allows the organization to drastically decrease transportation distances without needing to rely on trucks or boats.

The 55,000-acre site plans to pump out 160,000 tons of 6% lithium spodumene on an annual basis for ten years. So far, Snow Lake Lithium has revised just 1% of its site which is expected to be expanded during this year. To ensure sustainability, the mining will run on 100% renewable and hydroelectric energy. The firm will focus on mining hard-rock lithium which uses much less water and energy compared to brine. This crucial aspect will make it easier for manufacturers to create a net zero-emission product.

Philip Gross, CEO of Snow Lake Lithium said, "We are facing a once-in-a-century industrial pivot as North America accelerates towards an electrified future. If we don't act now to secure a seamless lithium supply chain from rock to road, the North American car industry will not exist in ten years' time.

"Our ambition is to become the first fully integrated, carbon-neutral lithium hydroxide provider to the North American electric vehicle industry. We are developing the world's first all-electric lithium mine, operated by renewable power, and are currently looking for a joint venture partner to create a lithium hydroxide processing plant in the region."

In the next few months, Snow Lake Lithium is set to expand on its engineering evaluation and drilling program throughout the Thompson Brothers Lithium Project site. It anticipates that the mine will bear commercial production fruits towards the end of 2024. The Manitoba area is well-known for its mining history and features a collection of experienced workers in the continent.

"Mining runs through Manitoba's DNA, the evolution of the electric vehicles supply chain offers a once in a generation opportunity to deliver economic growth and secure a sustainable future for mining for the province. We are working closely with Manitoba Province to develop the right conditions to make the most of this opportunity," Gross ends.

The largest lithium mine is currently situated in Greenbushes, Western Australia which is operated by the Chinese-owned Tailson Lithium. With Snow Lake Lithium, an integrated domestic supply chain may prove more beneficial for the automotive manufacturing process.