Legault fears that lithium escapes QuebecersThe Premier of...

Legault fears that lithium escapes Quebecers

The Premier of Quebec, François Legault, is worried that the lithium industry, this material prized by manufacturers of batteries for electric cars, is passing into the hands of exclusively foreign interests.

“If we want to be able to build batteries, it starts with lithium. I wouldn't want this sector to be given to the Chinese or to foreign companies, ”Mr. Legault replied to the Journal when asked about Quebec's decision to get involved in the rescue of Nemaska Lithium.

Under the protection of the Companies' Creditors Arrangement Act since last December, Nemaska announced Monday that it had accepted the asset buyback offer presented by the consortium formed by Orion Mine Finance, The Pallinghurst Group and Investissement Québec.

Proprio of "patente à gosses"

Through its financial arm, the government therefore becomes co-owner of the assets of the dissolved mining company, in equal parts with Pallinghurst, a British investment company specializing in the mining sector.

Together, the two buyers will inject $ 190 million when the transaction closes in October. Should follow then - without specific deadlines - other investments for a total of $ 600 million, but limited to $ 300 million for Investissement Quebec, assured us Monday the Minister of the Economy and Innovation (MEI), Pierre Fitzgibbon.

Last week, the latter surprised by qualifying the structure of Nemaska as a "patent for kids" and a "excessively ill-crafted" project. Investissement Québec will have lost $ 80 million in the adventure, just like - it seems - thousands of Quebecers who had the misfortune to buy its shares on the stock market.

"The old project [...] was badly structured in our opinion," confirmed Prime Minister Legault, while saying he was unhappy with the fate of "small investors" who will have experienced "significant losses".

Chinese capital already in Abitibi

Despite the losses already incurred, François Legault says he believes in the importance of investing in this sector. “I personally believe in the lithium industry [...]. Of course, if we are talking about electric cars, a big challenge will be the battery. "

Hence the importance, from his point of view, of keeping full control over the development and transformation of this resource, present in the Quebec subsoil.

Quebec, Minister Fitzgibbon said on Monday, would be a trustee of 2% of the world's lithium reserve. The main other lithium mining and processing project in Quebec is located in La Corne, approximately 60 kilometers from Val-d'Or, in the Abitibi region.

The North American Lithium mine project is already 95% owned by Jien International and Contemporary Amperex Technology Investment, two Chinese companies.The mine, which already had more than 300 workers in 2018, took shelter from its creditors in the spring of 2019. Fewer than twenty people still work there. Its receivables amount to $ 200 million, including nearly $ 100 million to Investissement Québec. Here too, we are looking for investors ready to relaunch activities.