THUNDER BAY, Ontario — The Ontario government has awarded CAD 262,500 through its Critical Minerals Innovation Fund to support a research project exploring how crude tall oil, a byproduct of the pulp and paper industry, could be used in lithium mineral processing.

The initiative brings together Rock Tech Lithium and Thunder Bay Pulp and Paper to investigate whether forestry-derived materials can replace conventional flotation reagents, potentially lowering both processing costs and carbon emissions in lithium production.

Pulp Mill Byproduct Could Support Lithium Processing

The project will evaluate crude tall oil as a flotation reagent used to separate lithium-bearing minerals from surrounding rock during mineral processing.

According to Rock Tech Lithium Chairman Dirk Harbecke, the research highlights an opportunity to create stronger regional supply chains by connecting Ontario’s forestry and critical minerals industries.

Crude tall oil is generated during the kraft pulping process and has traditionally been used in products such as biofuels, chemicals and adhesives. The new study will examine its potential as a sustainable input for lithium beneficiation.

Building Links Between Forestry and Mining

Harbecke said the collaboration demonstrates how underutilized forestry byproducts could create additional value while supporting Canada’s growing battery materials industry.

He noted that integrating local raw materials into lithium production could improve supply chain efficiency and reduce dependence on imported processing chemicals.

The research aligns with Ontario’s strategy of strengthening both its forest products sector and critical minerals value chain.

Lithium Projects Advance in Northwestern Ontario

Rock Tech Lithium is developing two major projects in the province:

• Georgia Lake lithium mine near Beardmore
• Lithium converter in Red Rock

The company estimates combined investment for the two projects at approximately CAD 900 million to CAD 1 billion following ongoing engineering and optimization work.

If completed, the developments are expected to create approximately 300 direct jobs, with around 150 positions each at the mining operation and converter facility.

Rock Tech aims to begin production at the Georgia Lake mine in mid-2028, potentially making it Ontario’s first producing lithium mine. Construction of the Red Rock lithium converter is expected to be completed by the end of 2028, with commercial production targeted for mid-2029.

Supporting Regional Economic Development

Ontario Associate Minister of Forestry and Forest Products Kevin Holland said the project demonstrates how collaboration between the forestry and mining sectors can create new economic opportunities.

He noted that finding higher-value applications for forestry byproducts supports the province’s forestry roadmap while helping diversify markets for mill residuals and strengthening Northwestern Ontario’s resource economy.

The initiative reflects growing interest in developing circular industrial partnerships that combine renewable forest resources with the rapidly expanding critical minerals and battery manufacturing sectors.

Last Updated on 13/07/2026 by Jota Machinery