On October 28 2025, Justice Chantal Corriveau of the Superior Court of Québec (Commercial Division) granted an Initial Order commencing Companies’ Creditors Arrangement Act proceedings for Lithion Technologies Inc., Lithion St-Bruno Inc., and Lithion International Inc. KPMG Inc. was appointed monitor. Investissement Québec (“IQ”)—a major secured creditor—was declared unaffected by the stay.
Founded in 2018, Lithion Technologies recycles end-of-life electric-vehicle batteries and production scrap into “black mass,” a concentrated mix of lithium, nickel, and cobalt. Its flagship Saint-Bruno-de-Montarville facility, completed in June 2024 at a cost of roughly $40 million, began production in November 2024.
The company had planned a second-stage hydrometallurgical plant to extract pure battery metals, creating a closed-loop “urban mining” supply chain, but cut research spending when funding dried up.
More than $100 million has been invested to date in technology and infrastructure. As of October 20, 2025, Lithion employed 45 non-unionized staff and remained current on payroll obligations.
The company reported net losses of $27.6 million (2024) and $10.2 million (2023), plus a $8.0 million loss in the five months ended August 31 2025. Despite emergency loans in April 2025 from IQ and private investors (IMM Investment Hong Kong, General Motors Ventures, Construction Seneca) totaling roughly $9.6 million, the company failed to raise long-term equity and exhausted liquidity.
Market headwinds—including a slowdown in the EV-battery sector and reduced investor appetite in North America—further constrained capital access. The group’s specialized assets offered little collateral value. By October 2025, management acknowledged insolvency and an imminent cash shortfall.
Under the proposed restructuring, Lithion will pause operations, retain only essential staff for equipment care, and run a court-supervised sale and investment solicitation process (SISP) led by Ernst & Young Orenda as SISP agent, in cooperation with KPMG and IQ. IQ will receive continuous reporting and retains consent rights on all SISP steps.
Norton Rose Fulbright Canada represents Lithion Technologies, Stikeman Elliott is on for KPMG as monitor, Lavery represents IQ and BLG is on for General Motors Ventures.
