Elevra signs non-binding MoU to supply spodumene to Mangrove, supporting Canadian lithium refining and strengthening domestic battery supply chain.
Elevra Lithium Limited, a North American lithium producer, has entered into a non-binding Memorandum of Understanding (MoU) with Mangrove Lithium for the potential supply of spodumene concentrate from the North American Lithium (NAL) operation. The MoU sets out a framework for negotiating a future binding agreement, which would depend on Mangrove reaching a final investment decision before June 2027 to construct a lithium conversion facility and both parties agreeing on final commercial terms.
Under the proposed arrangement, Elevra could supply up to 144,000 tonnes per annum of spodumene concentrate to Mangrove at market-linked pricing, subject to agreed floor and ceiling price mechanisms. This pricing structure is designed to safeguard positive cash flow generation for NAL throughout varying lithium price cycles. The contemplated supply term would span an initial five-year period beginning in 2028, with volumes gradually increasing to 144,000 tonnes annually by 2030. At peak levels, this would represent approximately 46% of Elevra’s projected sales volumes.
Mangrove intends to process the spodumene concentrate at a planned facility in Eastern Canada, converting it into battery-grade lithium hydroxide. The envisioned plant would have the capacity to produce 20,000 tonnes of battery-grade lithium annually—sufficient to support battery production for roughly 500,000 electric vehicles each year. This initiative aligns with broader efforts to establish a secure and resilient domestic battery supply chain within Canada.
The technical viability of Mangrove’s lithium conversion process has already been demonstrated at its pilot plant in Delta, Canada. Ongoing test work on NAL spodumene is expected to conclude in the third quarter of calendar year 2026. In addition to its pilot operations, Mangrove has commissioned North America’s first commercial electrochemical lithium refining facility, capable of producing 1,000 tonnes per year. This plant is being utilized for customer qualification programs and commercial validation.
Mangrove recently secured US$85 million in financing led by Canada Growth Fund, with participation from Breakthrough Energy and BMW i Ventures, alongside Mitsubishi Corporation, Orion Industrial Ventures, Export Development Canada, InBC, Asahi Kasei, and BDC Capital. Its proprietary electrochemical refining platform eliminates solid waste byproducts and utilizes low-cost, low-carbon electricity, offering environmental advantages and improved structural cost competitiveness compared to conventional lithium refining methods.
Elevra’s CEO and Managing Director, Lucas Dow, stated that signing the non-binding MoU represents a significant commercial step that strengthens the company’s market position while supporting Canada’s critical minerals strategy. He highlighted Mangrove’s pilot plant achievements and noted that supplying NAL production to a local processor is expected to enhance cost efficiencies and overall operational competitiveness.
Mangrove’s Chief Commercial and Strategy Officer, Annie Liu, emphasized that sourcing Canadian spodumene concentrate domestically aligns with Mangrove’s strategic vision. She noted that much of today’s lithium refining occurs overseas, resulting in lost downstream economic value for Canada. By processing feedstock close to its source, the collaboration would improve supply chain security, create high-value domestic jobs, and advance Canada’s Critical Minerals Strategy. She also underscored the benefits of leveraging Québec’s hydroelectric power to reduce carbon emissions and maintain cost competitiveness.
For Elevra, the MoU offers several strategic advantages, including reduced freight and logistics costs, a supportive pricing framework with downside protection, and the potential for a long-term offtake partner to underpin expanded production from the NAL brownfield expansion. The collaboration reinforces Québec and Canada’s ambition to build an integrated, end-to-end battery materials ecosystem while anchoring greater economic value within the country.
