Elevra, Mangrove Lithium Ink Offtake MoU for NAL Project in Quebec
•February 9, 2026
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Companies Mentioned
Why It Matters
The partnership gives Elevra a stable North American offtake channel while accelerating Mangrove’s plan to build domestic lithium‑refining capacity, bolstering Canada’s EV battery supply chain and reducing reliance on overseas sources.
Key Takeaways
- •Elevra may supply up to 144k tonnes/year spodumene.
- •Supply starts 2028, ramps to full capacity by 2030.
- •Mangrove plans to convert concentrate into battery‑grade lithium.
- •Facility could produce lithium for 500,000 electric vehicles annually.
- •Deal supports Canada’s domestic critical minerals supply chain.
Pulse Analysis
Elevra Lithium, created in 2025 through the merger of Sayona Mining and Piedmont Lithium, now controls the North American Lithium (NAL) project in Quebec’s Abitibi region. The NAL asset positions Elevra as a rare North‑American source of spodumene, a key raw material for lithium‑ion batteries, at a time when global demand is outpacing supply. By securing a potential offtake of up to 144,000 tonnes annually, Elevra can lock in revenue streams that underpin its growth strategy and improve cost efficiencies across its integrated value chain.
Mangrove Lithium, backed by an $85 million financing round that includes BMW i Ventures and Mitsubishi Corporation, plans to convert the NAL concentrate into battery‑grade lithium hydroxide or carbonate. Its proposed conversion facility, capable of producing 20,000 tonnes of lithium per year, would support roughly half a million electric vehicles, reinforcing Canada’s ambition to localise critical‑mineral processing. The company’s pilot plant in Delta, B.C., and a 1,000‑tonne electrochemical refining plant demonstrate technical readiness, while the pending investment decision by mid‑2027 will determine the speed of commercial rollout.
The Elevra‑Mangrove deal reflects broader industry trends toward supply‑chain resilience and geographic diversification. As North American automakers accelerate EV rollouts, policymakers are incentivising domestic sourcing of battery materials to mitigate geopolitical risks. This memorandum, while non‑binding, signals a strategic alignment that could accelerate the establishment of a full‑stack lithium ecosystem in Canada, offering investors a clearer pathway to capture value from the burgeoning EV market.
Elevra, Mangrove Lithium ink offtake MoU for NAL project in Quebec
Elevra Lithium (ASX: ELV; NASDAQ: ELVR) has inked an offtake agreement to supply spodumene concentrates produced at its North American Lithium (NAL) operations to Canada’s Mangrove Lithium.
Under the terms of a non-binding memorandum of understanding (MOU) signed on Monday, the parties intend to negotiate a definitive agreement under which Elevra could supply up to 144,000 tonnes per year of spodumene concentrate to Mangrove at market-related prices, subject to a floor and ceiling price.
The proposed supply would be for an initial period of five years, commencing in 2028 and ramping up to 144,000 tonnes per annum by 2030, which would represent approximately 46% of the estimated sales volumes.
A binding definitive agreement between Elevra and Mangrove may be signed at a future date, subject to Mangrove making a final investment decision prior to June 2027 for construction of a lithium conversion facility and agreement on the final terms, the companies said.
Elevra was formed in 2025 through a merger of equals between Australia’s Sayona Mining and US-based Piedmont Lithium. The tie-up brought together the two owners of the NAL project in Quebec’s Abitibi region.
At the time, Sayona said the $623 million all-stock deal would help to consolidate its Canadian operations and strengthen its exposure to the North American electric vehicle sector.
British Columbia-based Mangrove said it intends to process the NAL spodumene concentrates in Eastern Canada, potentially on site, into battery-grade lithium hydroxide or carbonate to support the establishment of a resilient domestic battery supply chain.
Mangrove’s facility would have the capacity to produce 20,000 tonnes of battery-grade lithium a year, which is the equivalent of 500,000 EVs. The company said it has demonstrated the viability of its lithium conversion process in a pilot plant located in Delta, BC.
Test work is being completed on NAL spodumene, and results are expected in the third quarter of fiscal 2026.
Alongside the pilot plant, Mangrove said it has constructed and commissioned North America’s first commercial electrochemical lithium refining plant, with a 1,000 tonnes per annum capacity, which will be used for customer product qualification programs.
Mangrove recently announced an $85 million financing round led by Canada Growth Fund, with support from returning investors Breakthrough Energy and BMW i Ventures. Other key supporters include Mitsubishi Corporation, Orion Industrial Ventures, Export Development Canada, InBC, Asahi Kasei and BDC Capital.
“Signing this non-binding memorandum of understanding with Mangrove marks an important step in strengthening our commercial position while supporting the Canadian government’s priority to build a secure critical minerals supply chain,” Elevra CEO Lucas Dow said in a news release.
“By supplying North American Lithium’s production to a local partner, we expect to improve our cost efficiency and reinforce the competitiveness of our operations.”
“Partnering with Elevra to source Canadian spodumene concentrate is a natural strategic fit for Mangrove,” Mangrove chief commercial and strategy officer Annie Liu added.
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