Investors looking to capitalize on the booming demand for lithium driven by electric vehicle (EV) growth should start their research with Canada’s largest lithium mines. By focusing on mines with substantial resources and reserves, investors can align themselves with valuable opportunities, whether through production or potential sales to larger mining companies seeking to replenish their dwindling assets.
These investment opportunities depend on various factors, including mine construction, lithium demand, fundraising for projects and the management’s capabilities in exploration, development, regulatory approval, and production. With that in mind, here are the five largest lithium mines in Canada, as highlighted by Natural Resources Canada:
1. PAK project (Frontier Lithium)
The PAK project, located in northwest Ontario, stands out as North America’s highest-grade lithium resource and the second-largest by size. It includes:
- 22 million tons of probable reserves with a grade of 1.55% Li2O.
- 26 million tons of measured and indicated resources at 1.6% Li2O.
- 32.5 million tons of inferred resources at 1.4% Li2O.
A 2023 pre-feasibility study indicates a post-tax net present value (NPV) of over $1.7 billion. The project recently entered a development partnership with Mitsubishi Corporation to create an integrated lithium mining and processing operation, with groundbreaking expected in 2025.
2. Boardwalk project (LithiumBank Resources)
LithiumBank Resources’ Boardwalk project in Alberta boasts:
- 395,000 tons of indicated lithium carbonate equivalent.
- 5.73 million tons of inferred lithium resources.
A preliminary economic assessment from 2023 estimates a net present value (8% discount) of $2.3 billion, with annual production projected at 34,005 tons of battery-grade lithium hydroxide over 20 years. Despite its potential, LithiumBank’s stock has declined over 75% since its inception in April 2022.
3. Whabouchi mine (Nemaska Lithium)
The Whabouchi mine in Nord-du-Québec is one of North America’s largest high-purity lithium deposits, estimated at 5.5 million tons of spodumene concentrate. The mine operates entirely on hydroelectric power and has secured an 11-year lithium hydroxide supply contract with Ford. Investors interested in this project can gain exposure through Arcadium Lithium, which co-owns Nemaska Lithium.
4. Kindersley project (Grounded Lithium)
Grounded Lithium’s Kindersley project is situated near other significant lithium projects in Alberta and Saskatchewan. It has:
- 4.2 million tons of inferred lithium carbonate equivalent.
A 2023 preliminary economic assessment highlights an after-tax NPV (8%) of $1 billion, with initial capital costs estimated at $335 million. Grounded Lithium has partnered with Denison Mines, enhancing investor confidence due to Denison’s strong track record.
5. North American Lithium project (Sayona Mining)
Sayona Mining’s North American Lithium project, located near La Corne in Quebec, spans 1,493 hectares and is the largest hard rock lithium production site in North America. Since restarting production in March 2023, it has produced over 140,000 tons of spodumene concentrate, with a total estimated output of 3.8 million tons over its lifetime. However, Sayona’s stock has seen a significant decline, down 71.11% year-over-year.
As lithium solidifies its role as a cornerstone of the global electrification movement, Canadian investors have ample opportunities to engage with the burgeoning supply chain. Each of these major lithium mines offers compelling potential for future growth, making them worthy considerations for investment portfolios.
