Phillip Gross has been in the natural resource sector all his whole working life. But he see the electrification of the automotive industry as a ‘once-in-a-century’ moment of transformation. His company, Snow Lake Lithium, is developing the world’s first sustainable lithium mine to support the North American auto industry.
Auto Futures has been talking to Gross about his plans for the mine in the Manitoba region of Canada, and the soaring demands for lithium driven by electric vehicle (EV) and battery production.
“Nobody cared about lithium. Lithium was a very unloved commodity that had very little purpose. Nobody knew the word lithium until about two three years ago, then it started becoming a bit of a buzzword within the industry. But, for the world at large, it’s only gone mainstream in the past six months,” says Gross.
Currently the US has to import most of its lithium from countries such as Chile. Gross believes there’s a systemic failure in the supply chain, and a seamless domestic supply chain is a necessity for the future of North America’s EV market.
“If we don’t act now to secure a seamless lithium supply chain from rock-to-road, the North American car industry will not exist in 10 years’ time.”
“China’s goal is not to be a lithium supplier to North America, or any other part of the world. China’s goal is that they have 300 EV manufacturers within their borders. They’re going to dominate the automobile industry for the next century. And, with all the greatest will in the world, unless these manufacturers today outside of China secure their supply chain, they will find themselves in a situation where they are existentially threatened for their future and their legacy,” he warns.
And that’s where Snow Lake Lithium comes in. It’s developing the world’s first all-electric lithium mine in Manitoba, operated by renewable power.
“Canada being probably the most mining-friendly jurisdiction in the first world for certain is a huge benefit. The fact that the geographical proximity to North America, putting us right in the backyard of the greatest automobile industry in the world, is a huge benefit. But additionally, it has tremendous resources within Manitoba and the will and the drive to exploit it, and derive benefit economically for the province,” says Gross.
The mine will be operated by almost 100% hydroelectric power to ensure a sustainable approach to manufacturing.
“We’re fortunate Manitoba is a province that is blessed with hydroelectric power source. So our power source is 90% renewable,” he says. “Electric mining makes sense.”
Its 55,000 acre site is expected to produce 160,000 tonnes of 6% lithium spodumene a year over a 10 year period. The mine is expected to transition to commercial production in late 2024.
Snow Lake Lithium is also planning to establish a joint venture to create a lithium hydroxide processing plant. To this end, it is seeking a partnership with an automotive OEM or a battery manufacturer.
However, Gross has this warning for the major OEMs. “If they don’t secure supply chain, they’re gonna find themselves extinct like Kodak.”
The Logic of a Nasdaq Listing
To accelerate its growth, Snow Lake Lithium listed on the Nasdaq in November, 2021 under the symbol ‘LITM’. The management participated in ringing the closing bell in New York on February 10, 2022.
“This important milestone represents the first step in achieving our mission of being the only fully renewable energy powered electric mine that can deliver zero carbon battery grade lithium to the electric vehicle market,” states Gross in a company press release.
“Three years from now is when things really get crazy. We’re looking at what’s going to happen in about three years from now. So we needed to get to market as rapidly and most accelerated fashion possible,” he tells us.
The company chose the Nasdaq over the Toronto Stock Exchange because it sees itself as a clean-tech company, not a pure mining play.
“The Nasdaq is much more technology-focused, much more growth-focused. There’s a much greater understanding of clean-tech than you’ll find in some of these other exchanges.”
“From where I’m looking, there’s nobody today that can wave the credentials that we have in terms of renewable, sustainable, in terms of electric, in terms of the geographic proximity. We are in a unique position to be able to really play a pivotal role.”
He adds: “In the next 10 to 15 years – who’s going to exist and not going to exist? I can’t tell you that. But I can tell you that everybody’s going to be driving electric and everybody’s going to need lithium.”
“I’m hoping that by 2030 we have the 1,000 mile battery.”
Finally, we asked Gross to paint a picture of mobility by the end of this century.
“You don’t have to compromise anymore on economics and luxury. That’s a thing of the past, and you’re now at the point where the economics and luxury are more improved on an electric vehicle than on a combustion engine or a traditional one. So by 2030 I just see that the pick-up is going to be as fast as the manufacturers can get it out. And presumably it’s going to be the UK and Germany and the United States that are going to come back fighting on this,” he predicts.
“You’re going find that it’s any one of those shocking situations where the costs are going be cheaper and cheaper to rent a car. It’s cheaper to buy a car and maintain a car, because all those things go down radically with electric vehicles, and I think that’s what we’re going to see. And I’m hoping that by 2030 we have the 1,000 mile battery, because that will make my life a lot more a lot more enjoyable.”
“I’m very much looking forward to never having to go to the petrol station again and fill it with gas,” concludes Gross.
Keyword: “Electric Mining Makes Sense” – Snow Lake Lithium CEO on Developing a Fully-Electric Lithium Mine