Elevra Lithium has entered into a non-binding memorandum of understanding (MoU) with Mangrove Lithium concerning the supply of spodumene concentrate.
The agreement outlines potential cooperation for delivering up to 144,000 tonnes per annum (tpa) of spodumene from the North American Lithium (NAL) project, starting in 2028, subject to market conditions with established price floors and ceilings.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The arrangement could evolve into a binding definitive agreement if Mangrove proceeds with its investment in a lithium conversion facility by June 2027.
The initial supply agreement is due to last five years, beginning in 2028 and escalating to the delivery of 144,000tpa by 2030. This volume would constitute around 46% of the anticipated sales.
Mangrove aims to convert the spodumene concentrate into battery-grade lithium hydroxide at its plant in eastern Canada, contributing to the development of a robust domestic battery supply chain in the country.
The facility has been designed to produce 20,000tpa of battery-grade lithium, enough to power 500,000 electric vehicles.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMangrove’s pilot plant in Delta, Canada, has already demonstrated the feasibility of its lithium conversion process, with ongoing test work on NAL spodumene expected to conclude by the third quarter of 2026.
Additionally, Mangrove has operationalised North America’s first commercial electrochemical lithium refining plant with a capacity of 1,000tpa.
Mangrove chief commercial and strategy officer Annie Liu said: “Partnering with Elevra to source Canadian spodumene concentrate is a natural strategic fit for Mangrove. Today, most lithium refining happens overseas, resulting in the loss of downstream value from Canada’s raw resources.
“By locating conversion close to the feedstock, we enhance supply chain security, support the creation of high-value domestic jobs and advance Canada’s Critical Minerals Strategy.”
Mangrove recently secured an $85m (C$114.89m) funding round led by Canada Growth Fund, backed by investors such as Breakthrough Energy and BMW i Ventures, alongside other supporters like Mitsubishi Corporation and Export Development Canada.
This financial backing supports its proprietary refining platform, which offers both environmental and cost advantages over traditional methods.
For Elevra, the MoU signifies a significant step towards aligning with a local downstream partner to enhance the economic viability of the NAL project.
Expected benefits include reduced logistics costs due to proximity, a pricing structure ensuring cash flow stability through market fluctuations and potential increased annual output from the NAL Brownfield Expansion.
The collaboration between Elevra and Mangrove aligns with Canadian and Québec governmental initiatives to bolster domestic battery production.
Elevra managing director and CEO Lucas Dow said: “Signing this non-binding MoU with Mangrove marks an important step in strengthening our commercial position while supporting the Canadian Government’s priority to build a secure critical minerals supply chain.
“Mangrove have achieved impressive results from their pilot plant and continue to refine their process efficiency. By supplying NAL’s production to a local partner, we expect to improve our cost efficiency and reinforce the competitiveness of our operations.”
In January 2025, Mangrove Lithium secured a C$50.61m investment for the construction of a lithium refining plant in Delta, British Columbia.
