Elevra Lithium reported solid Q2 FY26 production and revenue results while progressing its North American Lithium brownfield expansion and forging strategic supply partnerships.
- Q2 FY26 production of 44,154 dry metric tonnes and sales of 66,016 dmt
- US$66 million revenue with unit operating costs at US$812 per dmt sold
- Combined lithium ore reserve estimate of 106Mt at 1.15% Li2O
- Accelerated NAL brownfield expansion targeting 315 ktpa production capacity
- Non-binding MOU with Mangrove Lithium for spodumene concentrate supply
Q2 FY26 Operational Highlights
Elevra Lithium, North America’s leading hard-rock lithium producer, has delivered a robust operational update for the second quarter of fiscal year 2026. The company produced 44,154 dry metric tonnes of spodumene concentrate and sold 66,016 dry metric tonnes, generating US$66 million in revenue. Despite some challenges with feed grade and recovery rates, operational discipline saw process plant utilisation improve to 89%, underscoring the stability of its North American Lithium (NAL) operations.
Unit operating costs remained competitive at US$812 per dry metric tonne sold, reflecting ongoing efforts to optimise production efficiency and cost control. Elevra also reported a strong cash position of US$81 million as of December 31, 2025, supporting its growth ambitions.
Strategic Growth and Expansion Plans
Central to Elevra’s growth strategy is the accelerated brownfield expansion of its NAL asset. The company is targeting an increase in production capacity from approximately 200 ktpa to 315 ktpa of spodumene concentrate by 2028–2029 through a staged development approach. This phased expansion aims to reduce upfront capital intensity and bring forward cost reductions by about two years compared to a full-scale expansion.
The updated scoping study, expected in Q2 calendar year 2026, will incorporate these staged debottlenecking phases. Initial capital expenditure is estimated at US$270 million, with the expansion expected to lower unit operating costs to around US$630 per dry metric tonne post-expansion, significantly enhancing NAL’s commercial competitiveness.
Portfolio and Market Position
Elevra’s lithium resource base remains one of the largest in North America, with a combined ore reserve estimate of 106 million tonnes at 1.15% lithium oxide and a measured and indicated mineral resource of 183 million tonnes at 1.16% lithium oxide. The company’s diversified portfolio includes development-stage projects such as Authier, Moblan, Carolina Lithium, and Ewoyaa, providing multiple avenues for future growth.
The recent merger of Sayona Mining and Piedmont Lithium has strengthened Elevra’s market position and balance sheet, enabling operational synergies and enhanced strategic flexibility. This consolidation supports the company’s ambition to become a cornerstone supplier in the North American battery and electric vehicle supply chain.
Supply Chain Integration and Partnerships
Elevra is advancing a non-binding Memorandum of Understanding with Mangrove Lithium, a Canadian lithium refining technology company. This agreement envisages supplying up to 144,000 tonnes per year of spodumene concentrate from NAL to Mangrove’s planned lithium conversion facility, potentially creating one of the shortest mine-to-chemicals supply chains in the industry. The partnership includes a pricing framework with floor and ceiling prices to balance cash flow stability and market leverage.
The definitive supply agreement is subject to final terms and Mangrove’s investment decision by mid-2027. This collaboration aligns with Elevra’s strategy to integrate vertically into the battery materials supply chain and secure long-term demand for its expanded production capacity.
FY26 Guidance and Outlook
For the full fiscal year 2026, Elevra expects spodumene concentrate production between 180,000 and 190,000 dry metric tonnes, with sales guidance of 170,000 to 190,000 dry metric tonnes. Unit operating costs sold are forecast between US$860 and US$880 per dry metric tonne, with capital expenditures of approximately US$26 million focused on sustaining and growth projects.
With operations currently cashflow positive and a strengthened balance sheet, Elevra is well positioned to execute its strategic plans, including advancing permitting, capital raising, and downstream partnerships. The company’s disciplined approach to operational delivery and project development remains central to unlocking value for shareholders.
Bottom Line?
Elevra’s disciplined expansion and strategic partnerships position it to capitalise on North America’s growing lithium demand, but execution risks remain as key approvals and agreements await finalisation.
Questions in the middle?
- Will Elevra secure definitive agreements and financing to fully fund the NAL brownfield expansion?
- How will the evolving lithium market prices impact Elevra’s revenue and cost guidance?
- What progress will be made on downstream integration and partnerships beyond Mangrove Lithium?