The former Abitibi pulp mill site in Thunder Bay has a new owner, Avalon Advanced Materials.

The lithium producer has purchased the property with the intentions of developing a lithium processing plant.

A release from the company notes the location is strategically located nearby the resources in the north with direct access to rail, road and a deep water port.

Lithium is a much sought after resource, specifically for its use in electric vehicles and the batteries which power them.

Avalon currently has a pair of lithium focused projects in the region, including Separation Rapids north of Kenora and one near Ebametoong First Nation.

The company says once the facility is built it would provide an estimated 500 jobs in the region, and promote development of other lithium projects in the area by giving them a processing plant in close proximity.