Elevra Lithium signs supply deal with Mangrove Lithium for concentrate

Elevra Lithium Limited (ASX: ELV; NASDAQ: ELVR) signed a non-binding memorandum of understanding to supply spodumene concentrate to Mangrove Lithium, the company announced.

Under the proposed agreement, Elevra would supply up to 144,000 tonnes per year of spodumene concentrate to Mangrove at market-related prices with floor and ceiling pricing mechanisms. The supply arrangement would span five years starting in 2028, ramping up to full capacity by 2030, representing approximately 46% of Elevra's estimated sales volumes.

Mangrove plans to process the concentrate into battery-grade lithium hydroxide at a facility in Eastern Canada with capacity to produce 20,000 tonnes annually, equivalent to 500,000 electric vehicles. The company recently secured $85 million in financing led by Canada Growth Fund, with participation from Breakthrough Energy and BMW i Ventures.

The agreement requires Mangrove to make a final investment decision for its conversion facility construction by June 2027. Test work on North American Lithium spodumene is expected to be completed in the third quarter of 2026.

"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," said Elevra CEO Lucas Dow.

Mangrove operates a pilot plant in Delta, Canada, and has commissioned North America's first commercial electrochemical lithium refining plant with 1,000 tonnes annual capacity for customer qualification programs.

The arrangement would reduce freight costs for Elevra by supplying to a local converter and provide pricing stability through the floor price mechanism. The partnership supports Canada's strategy to develop domestic battery material production and reduce reliance on overseas processing.

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