New sample preparation laboratory in Sudbury, Ontario

Shares of Arcadium Lithium rose about 7% in extended trading after the company said that about 98% of its shareholders had voted in favor of the sale.

Chilean conglomerate CAP, which has invested $80 million in the company's Penco project, will become a new shareholder.

The past year has been torrid for lithium, as a global slowdown in the pace of EV adoption left the market saddled with a glut.

The new policy will not affect those qualified as "advanced coal projects" such as the controversial Grassy Mountain mine.