The Ontario government is investing CAD 262,500 through its Critical Minerals Innovation Fund (CMIF) to support a project led by Rock Tech Lithium that could create a new market for forestry byproducts while strengthening Canada’s critical minerals supply chain.

The funding will help validate the use of crude tall oil (CTO)—a byproduct generated during kraft pulping—as a low-cost, lower-emission flotation reagent for lithium processing.

Connecting Forestry and Critical Minerals

Crude tall oil is traditionally used in products such as biofuels, chemicals, adhesives, and coatings. The new project aims to determine whether the forestry-derived material can replace conventional flotation reagents used in lithium beneficiation.

If successful, the technology could:

• 🌲 Create new value streams for Ontario’s forestry sector
• 🔋 Support domestic lithium production
• ♻️ Reduce reliance on petroleum-based processing chemicals
• 📉 Lower emissions associated with lithium processing
• 🇨🇦 Strengthen Canada’s critical minerals supply chain

Red Rock Lithium Converter Project

The initiative is linked to Rock Tech’s planned lithium converter development in Red Rock, where the company intends to establish Ontario’s first lithium conversion facility.

The project will be developed on the former Norampac Paper Mill site, creating a unique example of industrial redevelopment that combines forestry heritage with next-generation battery material production.

Part of Broader Mining Innovation Investment

The funding forms part of nearly CAD 8 million announced for 18 mining innovation projects during the recent Canadian Mining Expo 2026.

According to the Ontario government, the investments are designed to:

• Accelerate domestic critical minerals development
• Support Canadian resource security
• Reduce dependence on foreign supply chains
• Encourage private-sector investment
• Create jobs across Northern Ontario

The province expects the funded projects to leverage approximately CAD 12.3 million in additional private-sector investment.

Forestry Byproducts Gain Strategic Importance

The project highlights a growing trend toward integrating forest-sector byproducts into emerging clean-energy industries.

As demand for lithium continues to rise due to electric vehicle and energy storage growth, alternative processing technologies that reduce costs and environmental impacts are attracting increasing attention.

For Ontario, the initiative represents an opportunity to connect two major industries—forestry and critical minerals—while advancing circular economy objectives and creating new commercial opportunities for pulp and paper byproducts.

Source: Ontario Government, Critical Minerals Innovation Fund, Rock Tech Lithium

Last Updated on 18/06/2026 by Jota Machinery