A stalled Quebec lithium undertaking is getting a second probability at tapping into North America’s fast-expanding electrical car battery provide chain because the provincial authorities commits $80 million to relaunching Nemaska Lithium.

The homegrown Quebec miner was as soon as on monitor to change into Canada’s first large-scale producer of lithium hydroxide by way of its Whabouchi mine, situated about 700 kilometres northwest of Montreal. But partway by way of the $1.1 billion build-out of the mine and associated processing plant in Shawinigan, Que., value overruns, a pointy decline in lithium costs and a scarcity of recent financing derailed the undertaking.

Provincially owned funding agency Investissement Québec and personal mining investor Pallinghurst Group stepped in to buy Nemaska in 2020. Chemical firm Livent has since purchased out Pallinghurst’s stake, and along with the Quebec authorities begun steering the Nemaska undertaking again towards manufacturing.

The $80 million in provincial funding goals to restart development on the mine within the Eeyou Istchee Baie-James area, in addition to kick-start work on a brand new processing plant.

Quebec Minister of Financial system and Innovation Pierre Fitzgibbon introduced the funding in Montreal June 30, calling the undertaking an vital “pillar” of the province’s battery business.

For the reason that Nemaska undertaking stalled in early 2019, Quebec has attracted a number of main battery provide chain traders, together with Germany’s BASF, Posco Chemical and Common Motors. The three corporations are establishing a pair of processing crops — each in Bécancour halfway between Montreal and Quebec Metropolis — that may produce a key enter for lithium-ion batteries.

In June 2021, Nemaska mentioned it has secured a web site in Bécancour for a plant that might course of lithium salt produced on the Whabouchi mine into battery-grade lithium hydroxide. The corporate mentioned the placement on the south shore of the St. Lawrence River presents a number of benefits over the plant initially deliberate for Shawinigan.

Whereas the provincial funding will clear the best way for development by supporting research and prep work, the mine and processing plant stay contingent on financing. The Quebec authorities mentioned Nemaska expects to lift the capital for the undertaking, valued at $1.5 billion, early subsequent yr. The lithium mine and processing plant might come on-line as early as 2025, the province mentioned.

With different Canadian lithium initiatives dealing with comparable hurdles to Nemaska’s, the nation continues to be awaiting large-scale manufacturing of the important thing battery materials, in keeping with Pure Sources Canada. As of final yr, practically two  dozen lithium mining initiatives had been being superior throughout 5 provinces.