Investors interested in increasing their exposure to Canadian lithium stocks and capitalizing on expected exponential long-term demand thanks to EV growth should begin their due diligence with the country’s largest mines by resources and reserves.
Ranking lithium mines by their extractable commodities optimizes for value creation – either through production or a sale to a larger mining company looking to replace its dwindling assets – aligning investors with quality opportunities at a profitable exit.
These opportunities are, of course, contingent on mine construction, lithium demand and its effect on project fundraising, as well as management skill in the areas of exploration, development, regulatory approval and production, and any other components that make up your personal investment due diligence process.
With this proviso in mind, here are the five largest Canadian lithium mines, according to Natural Resource Canada’s latest survey, each of which is well worth considering for a potential allocation:
- Sayona Mining’s North American Lithium project, coming in at 3.8 million tons of spodumene concentrate.
- Grounded Lithium’s Kindersley project at 4.2 million tons of inferred lithium carbonate equivalent.
- Nemaska Lithium’s Whabouchi mine at 5.5 million tons of spodumene concentrate.
- LithiumBank Resources’ Boardwalk project at 395,000 tons of lithium carbonate equivalent indicated and 5.73 million tons inferred.
- Frontier Lithium’s PAK project, coming in at 22 million tons of probable reserves grading 1.55 per cent Li2O, 26 million tons of measured and indicated resources grading 1.6 per cent Li2O and 32.5 million tons of inferred resources grading 1.4 per cent Li2O.
The five largest lithium mines in Canada
5. The North American Lithium project
The North American Lithium project, owned by Sayona Mining (OTCQB:SYAXF), spans 1,493 hectares near La Corne township in Quebec’s Abitibi-Témiscamingue region. The project, only 60 km north of the city of Val d’Or, a major mining service centre, restarted production in March 2023 and has produced over 140,000 tons of spodumene concentrate to date.
The project stands as the largest source of hard rock lithium production in North America, being expected to produce 3.8 million tons of spodumene concentrate over its lifetime.
Sayona made the project’s first shipment of spodumene (lithium) concentrate to the international lithium market in Aug. 2023, achieving revenue within the first two years after the initial acquisition.
Despite its leadership in the Canadian lithium market, Sayona Mining stock is down by 71.11 per cent year-over-year, last trading at US$0.0175.
4. The Kindersley project
The Kindersley project, owned by Grounded Lithium (TSXV:GRD), is located next to numerous multi-million-ton lithium projects in Alberta and Saskatchewan, including E3 Lithium‘s Bashaw district holdings, Empire Metals‘ Fox Creek project and LithiumBank Resources’ Boardwalk project, the latter discussed later in this article.
Kindersley backs up its highly prospective company with 4.2 million tons of inferred lithium carbonate equivalent, as well as a 2023 preliminary economic assessment detailing an after-tax net present value (8 per cent) of US$1 billion and initial capital costs of just US$335 million.
A Jan. 2024 earn-in agreement with mining powerhouse Denison Mines (TSX:DML) positions investors to benefit from the company’s expertise and proven ability to create shareholder value, with DML shares having added almost 300 per cent since 2019.
Grounded Lithium stock, for its part, last traded at C$0.035 per share and has given back 68.18 per cent year-over-year.
3. The Whabouchi mine
The Whabouchi mine, owned by Nemaska Lithium, is one of the largest high-purity lithium deposits in North America and Europe, coming in at an estimated 5.5 million tons of spodumene concentrate.
Nestled in the Eeyou Istchee James Bay territory in Nord-du-Quebec, the mine is completely powered by hydroelectricity and has demonstrated the ability to produce premium spodumene concentrate destined for a new lithium hydroxide conversion facility expected in 2025.
An 11-year lithium hydroxide supply contract with Ford promises to be the first of many converting reserves into tangible value.
Since Nemaska Lithium is a private company, investors seeking exposure to it must buy shares of Arcadium Lithium (NYSE:ALTM), the global lithium producer that owns the company alongside Investissement Quebec, the economic development agency of the Quebec government.
2. The Boardwalk project
The Boardwalk project, owned by LithiumbBank Resources (TSXV:LBNK), is an Alberta-based lithium development housing a resource of 395,000 tons of lithium carbonate equivalent indicated and 5.73 million tons inferred.
The project’s 2023 preliminary economic assessment supports a net present value (8 per cent) of US$2.3 billion and annual production of 34,005 tons of battery grade lithium hydroxide monohydrate over 20 years, representing the largest proposed production in North America.
LithiumBank stock hasn’t yet reflected Boardwalk’s billions in resources in the ground, having given back over 75 per cent of its value since inception in April 2022. Shares last traded at C$0.44.
1. The PAK project
The PAK project in northwest Ontario, owned by Frontier Lithium (TSXV:FL), ranks as North America’s highest-grade lithium resource and the second-largest on the continent by size, containing:
- 22 million tons of probable reserves grading 1.55 per cent Li2O.
- 26 million tons of measured and indicated resources grading 1.6 per cent Li2O.
- 32.5 million tons of inferred resources grading 1.4 per cent Li2O.
PAK’s two primary deposits offer exposure to over US$1.7 billion in post-tax net present value (8 per cent), according to a 2023 pre-feasibility study, without counting multiple prospective pegmatites the company has since discovered.
Frontier Lithium stands on a firm path toward realizing PAK’s value thanks to a development partnership with Mitsubishi Corporation announced in March 2024, which will see the companies build the first fully integrated lithium mining and processing
operation in Ontario. The companies intend to break ground on the project in 2025.
Frontier Lithium shareholders have been optimistic about developments at PAK over the past five years, reaping an 156 per cent return over the period, though the stock has given back 41.82 per cent year-over-year. Shares last traded at C$0.64.
With lithium well-established as a pillar of global electrification, and net-zero 2050 goals still over 25 years away, Canadian investors have a long runway to participate in the metal’s burgeoning supply chain and own a piece of leading assets in the space. Five of those assets, the largest lithium mines in Canada, make a strong case for the next addition to the mining sleeve of your portfolio.
Join the discussion: Find out what everybody’s saying about the five largest lithium mines in Canada on the Sayona Mining Ltd., Grounded Lithium Corp., Arcadium Lithium PLC, LithiumBank Resources Corp. and Frontier Lithium Inc. Bullboards, and check out the rest of Stockhouse’s stock forums and message boards.
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(Top photo of Grounded Lithium’s Kindersley project in Saskatchewan: Grounded Lithium)