North American lithium producer Elevra Lithium has signed a nonbinding memorandum of understanding (MoU) with Mangrove Lithium for the supply of spodumene concentrate from its North American Lithium (NAL) operation in Quebec.

Under the proposed agreement, Elevra could supply up to 144 000 t/y of spodumene concentrate to Mangrove at market-related prices, subject to a floor and ceiling mechanism. The initial term would be five years from 2028, with volumes ramping up to the full rate by 2030.

The agreement remains subject to Mangrove making a final investment decision by June 2027 on the construction of a lithium conversion facility in Eastern Canada, as well as finalisation of commercial terms.

Mangrove plans to process the spodumene into battery-grade lithium hydroxide, supporting the development of a domestic battery supply chain in Canada. The proposed facility would have capacity to produce about 20 000 t/y of battery-grade lithium.

Mangrove has demonstrated its lithium conversion process through a pilot plant in Delta, Canada, and is currently undertaking testwork on NAL material, with results expected in the third quarter of 2026. The company has also commissioned a commercial electrochemical lithium refining plant with capacity of 1 000 t/y.

Elevra said the MoU could deliver strategic benefits, including reduced freight and logistics costs, improved pricing stability through a floor-and-ceiling framework, and potential support for increased output from the planned NAL brownfield expansion.

The proposed partnership also aligns with federal and provincial strategies aimed at strengthening Canada’s battery materials ecosystem by encouraging domestic processing and reducing emissions linked to long-distance transport.

Mangrove’s proprietary electrochemical refining platform is designed to convert a range of feedstocks into battery-grade lithium hydroxide while eliminating solid waste byproducts and reducing reliance on conventional processing routes.