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Mangrove Lithium has closed a $35-million investment to begin construction of its lithium refinery in Delta, B.C., which will produce materials for electric vehicle (EV) batteries.
Construction on the facility, which is scheduled to be operational in late 2025, has already started. It is designed to produce enough battery-grade materials for approximately 25,000 EVs per year.
Mangrove’s refining process turns lithium chloride and lithium sulphate extracted from brine, rock or clay into battery-grade lithium hydroxide. The output can be used as a cathode material for EV battery production.
The company emphasizes its electrochemical refining technology can be located near sites where lithium extraction or battery manufacturing takes place, reducing costs in the battery supply chain and carbon emissions from transportation. Furthermore, the technology only generates acids as byproducts, which be recycled in lithium refining and extraction, Mangrove says.
“Establishing North America’s first electrochemical lithium refining facility marks a key milestone in securing the continent’s battery supply chain,” Saad Dara, CEO of Mangrove Lithium, said in the announcement.
New investors in the round include Mitsubishi Corporation, Asahi Kasei Corporation, InBC Investment Corp., Orion Industrial Ventures and Export Development Canada. They join existing backers Breakthrough Energy Ventures and BMW i Ventures, which led a $32-million investment in Mangrove in 2022, and BDC Capital.
“Our Delta plant will help meet the growing demand for battery-grade lithium while enhancing energy independence amid rising geopolitical uncertainties,” Dara said.
Energy security, self-reliance at heart of investments
Onshoring battery manufacturing has been a key issue for the Canadian government. Political tension with China, a dominant player in the sector, is a driving factor as the economy increasingly electrifies and demand rises for energy storage. Other concerns are strengthening supply chains and trade barriers being erected by the U.S.
Over $50 billion has been poured into the EV sector by the Canadian and provincial governments, particularly for the manufacturing of batteries and the related supply chain.
Canadian battery companies, such as Mangrove and Electra Battery Materials Corp., have centred their pitches around promoting energy independence and security.
For example, customers such as battery manufacturers will benefit from being less reliant on battery materials from outside Canada, which are subject to uncertainty and price volatility, Mangrove says on its website.
"Sustainable critical minerals are essential to the global energy transition and the growing demand for lithium isn’t slowing down, with electric vehicles, energy storage and electronics all relying on it," Leah Nguyen, chief investment officer of InBC, said, reflecting the importance of the sector.
Mangrove signed a memorandum of understanding with U.K.-based LevertonHELM in 2024 to apply its refining technology in a European facility, which hints at its global ambitions.
CHECK BACK FOR MORE: Sustainable Biz Canada has requested further information about this project from Mangrove Lithium. We will update this article when and if new details become available.
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