Like other lithium exploration companies in the Canadian “Lithium Triangle” region, Stria is exploring and developing its Pontax property with the benefit of an unprecedented level of government co-operation and assistance.
Lithium has been dubbed “white gold,” and the rush for it is definitely on in Canada and the United States with governments legislating and otherwise incentivizing a transition to electric vehicles powered by lithium batteries made from North American parts and raw materials – including lithium.
Almost 80 per cent of the world’s lithium supply currently comes from China, South America and Australia – and almost none of it comes from Canada or the U.S. This raises concerns about the security of the supply chain and the potential for price volatility.
Given the critical economic and social importance of the auto industry to both countries – and that means the successful transition to electric vehicles – federal governments in Canada and the U.S. are treating the creation of a continental lithium industry as a national policy imperative.
As a result, in the past two years alone, governments in both countries have committed billions of dollars to help create and grow a reliable North American supply chain for lithium EV batteries, starting with support for rare mineral exploration and development companies such as Stria Lithium.
Stria has already been approved for an early-stage grant from the Government of Quebec. At the same time, Quebec has committed to more broadly supporting the growth of lithium extraction in the James Bay region, including through a $4.7-billion infrastructure program in partnership with the James Bay Cree (Eeyouch), to improve roads, rail, ports and access to hydroelectric power.
The Government of Canada is also throwing its support behind the creation of a domestic supply chain for electric car batteries, announcing it will provide up to $3.8 billion, including a $1.3 billion investment in a state-of-the-art lithium refinery in Becancour, Quebec. The government believes that investing in lithium will not only help to secure the domestic supply chain and stabilize prices, but will create jobs and support Canada’s transition to a low-carbon economy.
Similarly in the U.S., President Biden signed a Presidential Directive in 2022 to support the creation of a secure, North American supply of lithium vital to the future of the U.S. auto industry and all it means to the national economy. By law, electric vehicle battery makers must use raw materials from North America or a country with a U.S. trade agreement to qualify for federal EV subsidies and incentives.