Avalon completes purchase of site in Thunder Bay, Ont. for lithium production

TORONTO — As part of its strategic transformation to become a vertically integrated lithium producer, Avalon Advanced Materials Inc. announces the successful acquisition of an industrial site in Thunder Bay, Ontario (965 Strathcona Avenue) which has existing road, rail, deep-water port, and utilities services for its planned midstream lithium-hydroxide (LiOH) processing facility.

The planned facility will ensure the long-term security of domestic lithium processing capacity required for North America’s electric vehicle (EV) and battery supply chain.

“In addition to accelerating onshore EV production capacity, our plan will help achieve a geo-strategic priority for Canada and other G7 nations to establish stable, secure access to refined raw material,” noted Zeeshan Syed, Avalon President. “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.”

Thunder Bay, population 125,000, is strategically located at a provincial midpoint between the resources of the north and downstream EV battery and automotive manufacturing hubs in the south.

“Thunder Bay has long served as a strategic port for Canadian industry, facilitating trade between Ontario’s north and the rest of North America,” Ken Boshcoff, Mayor of Thunder Bay, said. “We’re thrilled to be partnering with Avalon to continue that tradition, while bringing jobs and new economic opportunities to the region.”

With the finalization of this site purchase, Avalon’s focus moves to build upon its relations with First Nations partners, the local community and government. Deepening this collaboration is key to ensuring members of the regional ecosystem all benefit from the project and prioritize environmental stewardship. First Nations communities are valued partners, and the Company looks forward to an ongoing dialogue of mutual respect and seeking partnerships in the new green economy.

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.

When complete, the integrated project hopes to:

• Create an estimated 500 jobs in the City of Thunder Bay as well as in Kenora, Ontario and their surrounding regions, respectively.
• Enable broader development of northwestern Ontario’s lithium assets by producers seeking to utilize the proximity of Avalon’s processing capacity.
• Create tangential benefits, including the intention to create a regional critical-minerals innovation and R&D hub in partnership with local university and college stakeholders.
• Create supply chain efficiencies by connecting 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.

Localizing the EV battery supply chain creates a multiplier effect of investment opportunities. In just the few short months since the Inflation Reduction Act (IRA) was passed, the United States has seen more than US$40 billion worth of new investment announcements across the battery supply chain.