The Canada Growth Fund (CGF) is investing up to US$65 million in Vancouver-based Mangrove Lithium to commercialize its lithium refining technology, a major boost to one of the nation’s leading up-and-comers in the sector.

The financing package could expand to US$85 million with other investors poised to participate, such as Breakthrough Energy Ventures and BMW i Ventures. It is concurrent with a $9-million Clean Technology Manufacturing investment tax credit-backed loan underwritten by National Bank of Canada.

"Mangrove Lithium is at a pivotal moment in its growth, and CGF's investment accelerates our expansion," Saad Dara, Mangrove’s CEO and co-founder, said in the announcement late last week.

The funds will be used to support the commissioning of the company’s technology in Canada and other countries. Lithium chloride and lithium sulphate from brine, rock or clay are refined into battery-grade lithium hydroxide, which can be used to make cathodes for electric vehicle (EV) batteries.

Mangrove plans to produce enough lithium to support the manufacturing of tens of thousands of EV batteries per year.

The CGF is a $15-billion independent investment fund that operates at arm’s length from the Canadian government, supporting domestic cleantech businesses. It has funded companies such as notable carbon capture player Svante and energy storage project developer Hydrostor.

Mangrove's plans for refineries

Mangrove has finished construction on Phase 1 of its 1,000-tonne-per-year commercial lithium refining facility in Delta, B.C. That capacity provides enough battery-grade material to power approximately 25,000 EVs per year, Mangrove said.

The refinery is planned to host Mangrove’s headquarters, labs and manufacturing, Dara told Sustainable Biz Canada in a 2025 interview. The feedstock is expected to come from battery recycling operations and lithium miners in South America and Australia, then be refined into lithium to supply Japanese and South Korean battery makers.

Leveraging the investment tax credit through a bridge loan will support the development of the 1,000-tonne-per-year facility and create a model for future large-scale industrial projects financing in Canada, Mangrove said.

Additionally, the CGF funding will aid Mangrove on development of its full-scale facility, which is designed to produce 20,000 tonnes of battery-grade lithium — enough for over 500,000 EVs per year. Mangrove has completed early engineering and is conducting site selection. In a LinkedIn post, Dara said it plans to site the facility in Eastern Canada.

In the 2025 interview, Dara said the goal with the full-scale facility is to “really establish full processing capabilities within Canada.”

The full-scale facility is expected to process feedstock from North and South America, producing lithium for Japanese and South Korean battery makers plus battery makers that have plans for facilities in North America.

Mangrove part of Canada's critical minerals strategy

Mangrove emphasizes how its process can help onshore critical minerals refining. With political tensions brewing between China, a dominant player in the sector, and the West, Canada has looked to bring the industry closer to home.

The Canadian government has created a strategy to build the critical minerals supply chain in the country, backed by billions of dollars in support.

One key step is prioritizing critical minerals in its Major Projects Office, with the aim of accelerating regulatory approval of mines and refineries. The projects of companies like Canada Nickel are being considered for streamlining.

The CGF has supported critical mineral-focused companies such as Saint-Michel-des-Saints, Que.-based Nouveau Monde Graphite, Rio Tinto Iron and Titanium in Quebec and Vancouver-headquartered Foran.

Mangrove’s Canadian peers include pH7 Technologies, Lithion Technologies and Frontier Lithium Inc.