Tag: Canada mining

  • Rock Tech Lithium and Siemens Partner to Develop Digitalised Lithium Converter in Ontario

    Rock Tech Lithium and Siemens Partner to Develop Digitalised Lithium Converter in Ontario

    Rock Tech Lithium and Siemens Canada have signed a non-binding memorandum of understanding to establish a long-term strategic partnership aimed at developing advanced lithium conversion capacity in Canada, centred on the planned Red Rock converter project in Ontario.

    The agreement, announced during the Canadian Critical Minerals Forum hosted by Natural Resources Canada at PDAC 2026 in Toronto, focuses on applying Siemens’ digitalisation technologies, including Digital Twin systems, throughout the design, construction and operation of the lithium processing facility.

    The Red Rock converter will be developed using the engineering blueprint of Rock Tech’s fully permitted Guben lithium converter project in Germany. By replicating the design, the company aims to accelerate development timelines, reduce technical risks and improve capital efficiency while moving toward a final investment decision in Canada.

    The planned facility is expected to produce up to 32,000 tonnes of lithium carbonate equivalent annually, enough to supply battery materials for roughly 900,000 electric vehicles each year. Once operational, the plant would become Ontario’s first lithium conversion facility and a key component of Canada’s emerging battery materials supply chain.

    Rock Tech said the project will form part of a vertically integrated supply chain alongside its Georgia Lake lithium mining project, creating a regional “rock-to-battery” corridor within Ontario.

    Under the partnership, Siemens will deploy its Digital Twin technology to model process design, energy use and material flows across the entire project lifecycle. The digital system is intended to optimise plant efficiency, emissions performance and operational reliability before major capital investments are committed.

    The collaboration also reflects growing strategic cooperation between Canada and Germany on critical minerals supply chains. Officials said the Red Rock project aligns with priorities under the G7 Critical Minerals Production Alliance and could serve as a reference model for future lithium conversion facilities in allied markets.

    The partnership will be implemented in multiple phases, beginning with the integration of digital technologies into feasibility and engineering studies. The companies will also explore additional Siemens services and potential joint funding opportunities with Natural Resources Canada, the Government of Ontario and bilateral Canadian-German programmes.

    Canadian Energy and Natural Resources Minister Tim Hodgson said initiatives such as the Red Rock project demonstrate how G7 partners are moving from policy commitments to concrete investments aimed at building secure and sustainable critical mineral supply chains.

  • EU carbon border tax could give Canadian nickel a competitive edge in Europe

    EU carbon border tax could give Canadian nickel a competitive edge in Europe

    The European Union’s Carbon Border Adjustment Mechanism (CBAM), which entered its full phase this month, has begun imposing a carbon price on imports of carbon-intensive goods such as steel, iron, aluminum and cement from non-EU countries. Importers must now pay a levy equivalent to the cost of carbon allowances under the EU’s Emissions Trading Scheme, currently close to €90 per tonne.

    In December, the European Commission proposed expanding CBAM to cover around 180 downstream products with a high steel or aluminum content, including car parts, machinery and construction equipment. While nickel was not included in this round, the Commission has left the door open to adding it in future updates, potentially from 2028, when the next legislative proposal is due.

    Such a move could significantly benefit Canadian nickel exporters. Canada’s nickel production is relatively low-carbon, largely because of the country’s clean electricity mix, making it more competitive under CBAM compared with higher-emission producers such as Indonesia, where coal-fired power dominates.

    Mark Selby, chief executive of Canada Nickel, said the company already expects to benefit indirectly from CBAM through steel and alloy exports, and would gain further if nickel itself is covered. Canada Nickel is advancing the Crawford sulphide nickel project in Ontario, targeting construction by the end of 2026 and initial production of around 30,000 tonnes of nickel per year, rising to 50,000 tonnes. Europe is expected to be a key export market.

    Nickel is classified as a critical raw material for the EU, essential for electric vehicles, batteries and defence applications. Europe remains highly dependent on imports, with all of its mined nickel production in 2024 coming from just two sulphide mines in Finland. Canada, the world’s sixth-largest nickel producer, already supplies the EU and could expand its market share if CBAM favours low-carbon producers.

    Photinie Koustavlis of the Mining Association of Canada said a well-designed CBAM that accurately measures embedded emissions would tend to favour responsible producers. Independent analysis consistently shows Canadian nickel among the lowest in carbon intensity globally, in contrast to significantly higher emissions from some Indonesian operations.

    With CBAM’s full rollout next year set to test compliance systems and reporting, exporters and importers alike will be watching closely. For Canadian nickel producers, a future expansion of CBAM could strengthen their position in a market increasingly shaped by carbon costs.