Toronto- and Frankfurt-listed Frontier Lithium has entered into a nonbinding memorandum of understanding (MoU) with Korean firms Hanwha Corporation and Hanwha Ocean (collectively Hanwha) to establish a framework for evaluating potential cooperation across the lithium value chain.

Under the terms of the MoU, the parties will evaluate opportunities related to the potential supply and purchase of lithium products, including battery-grade lithium products from Frontier’s proposed integrated lithium operations in Ontario.

The parties will also explore broader strategic, technical and commercial cooperation opportunities, including potential strategic investment and project-level financing, in support of developing secure and regionally integrated critical mineral supply chains. 

The MoU contemplates further discussions regarding potential long-term commercial arrangements, including possible offtake by Hanwha or its affiliates, subject to due diligence, internal approvals and the negotiation of definitive agreements. 

The engagement reflects Hanwha’s broader interest in Canadian industrial partnerships, including its participation in the Canadian Patrol Submarine Project (CPSP) procurement process. In this context, and in support of broader Canadian industrial engagement, strategic critical mineral collaboration and long-term supply chain participation associated with the CPSP, Hanwha is reviewing potential cooperation opportunities with Canadian counterparties, including Frontier, whose strategy is aligned with these objectives. 

“This MoU establishes a framework for continued dialogue as we evaluate areas of potential collaboration. Frontier's integrated mine-to-chemical strategy is designed to provide a reliable North American source of battery-grade lithium products and we believe there is a strong alignment between our development plans and Hanwha's long-term requirements for advanced battery materials," says Frontier president and CEO Trevor Walker.

“Hanwha recognises the growing strategic importance of secure and sustainable lithium supply chains for advanced technologies and energy storage applications. Through this MoU, we look forward to evaluating opportunities with Frontier Lithium and its partners related to lithium supply, project development and broader industrial cooperation,” adds Hanwha Ocean naval ship global strategy department executive VP Jung Hoon Choi. 

Frontier is focused on the development of its 100%-owned PAK lithium project in Ontario, Canada.

The Canadian government in August last year announced that German company Thyssen Krupp Marine Systems and Hanwha Ocean had been selected as the two qualified suppliers for the CPSP, which was established in 2021 to assess the potential replacement class of submarines and avoid any gap in Canadian submarine capabilities. The CPSP is aimed at acquiring up to 12 submarines for the Royal Canadian Navy.