Frontier Lithium Inc. announced the execution of a Memorandum of Understanding ("MoU") between the Company, Panasonic Energy Co., Ltd. ("Panasonic Energy") and Mitsubishi Corporation ("Mitsubishi") regarding the potential procurement of lithium salts and a broader strategic collaboration in support of developing a secure, localized North American battery supply chain. Frontier and Mitsubishi have previously established a joint venture company advancing the integrated PAK Lithium Project (the "PAK Lithium Project" or "Project") in Ontario, Canada. The Project is designed to support the North American automotive industry's transition to electrification by developing both: An upstream lithium mine and mill; and A downstream lithium conversion facility targeting initial production of approximately 20,000 tonnes per annum of battery-grade lithium salts commencing in 2030.
The PAK Lithium Project hosts one of the largest high-grade lithium reserves in North America, positioning it as a strategically important source of critical minerals for domestic battery manufacturing. Panasonic Energy, a principal subsidiary of Panasonic Holdings Corporation, is a leading global manufacturer of lithium-ion batteries for automotive and energy storage applications. Headquartered in Japan, Panasonic Energy operates major battery production facilities in Nevada and Kansas, which supply the North American market.
Under the MoU, Panasonic Energy has expressed interest in procuring lithium hydroxide from the PAK Lithium Project. The parties also intend to explore broader collaboration opportunities to advance a resilient and sustainable battery supply chain in North America, including potential technical cooperation. The parties to the MoU have confirmed their willingness to negotiate a definitive offtake agreement at an appropriate stage of the Project, which may include competitive pricing mechanisms subject to further discussions and technical support.
This MoU reflects the parties' shared strategic objective of strengthening regional supply chains amid evolving demand for electric vehicles and increasing emphasis on supply chain resilience and sustainability. Except for certain customary provisions, the MoU is non-binding and does not create legal obligations with respect to supply or investment, and rather, it establishes a framework for continued negotiations and cooperation.
