Elevra Lithium has signed a non-binding MoU to supply up to 144,000 tonnes of spodumene concentrate annually to Mangrove Lithium, supporting a new Canadian lithium conversion facility and strengthening domestic battery material production.
- Non-binding MoU to supply spodumene concentrate starting 2028
- Up to 144,000 tonnes per year, ramping by 2030
- Supports Mangrove’s lithium hydroxide conversion plant in Eastern Canada
- Pricing framework with floor and ceiling prices to ensure cashflow
- Partnership aligns with Canadian government’s critical minerals strategy
Elevra and Mangrove’s Strategic Collaboration
Elevra Lithium Limited has taken a significant step towards bolstering North America's lithium supply chain by signing a non-binding Memorandum of Understanding (MoU) with Mangrove Lithium. This agreement outlines plans for Elevra to supply Mangrove with spodumene concentrate mined at Elevra’s North American Lithium (NAL) operation in Québec. The partnership is designed to underpin Mangrove’s development of a lithium conversion facility in Eastern Canada, which will produce battery-grade lithium hydroxide, a critical component for electric vehicle batteries.
Supply and Pricing Framework
The MoU envisages a supply of up to 144,000 tonnes per annum of spodumene concentrate, beginning in 2028 and scaling up by 2030. This volume would represent nearly half of NAL’s estimated sales, providing a stable and substantial offtake for Elevra. Importantly, the agreement includes a pricing mechanism with both floor and ceiling prices, designed to safeguard positive cashflow for Elevra across lithium market cycles while maintaining exposure to price upside. This structure offers a degree of financial predictability amid the volatility typical of commodity markets.
Advancing Canada’s Battery Ecosystem
Mangrove’s planned facility aims to produce 20,000 tonnes of battery-grade lithium hydroxide annually, enough to supply materials for approximately 500,000 electric vehicles. By locating the conversion process close to the source of spodumene concentrate, the partnership reduces transportation costs and emissions, reinforcing a more sustainable and resilient domestic battery supply chain. This initiative aligns closely with Canadian government priorities to develop critical minerals infrastructure and reduce reliance on overseas processing.
Innovative Refining Technology and Environmental Benefits
Mangrove’s proprietary electrochemical refining technology is a standout feature of this collaboration. It eliminates solid waste byproducts and leverages low-cost, low-carbon hydroelectric power available in Québec, offering both environmental advantages and cost competitiveness compared to conventional lithium refining methods. The company has already demonstrated the viability of its process in a pilot plant and operates North America’s first commercial electrochemical lithium refining plant, which supports customer qualification programs.
Looking Ahead
While the MoU is non-binding and contingent on Mangrove’s final investment decision by June 2027, as well as pending spodumene test results expected in Q3 2026, the agreement marks a pivotal commercial milestone for Elevra. It not only secures a potential long-term customer but also strengthens the economics of the NAL operation and supports the broader development of Canada’s battery materials ecosystem.
Bottom Line?
This partnership could redefine North America’s lithium supply chain, but key investment decisions and test results remain ahead.
Questions in the middle?
- Will Mangrove proceed with its final investment decision by mid-2027?
- How will spodumene concentrate test results impact the definitive agreement terms?
- What are the implications for Elevra’s planned Brownfield Expansion at NAL?