Elevra, Mangrove Lithium ink offtake MoU for NAL project in Quebec

Core Viewpoint - Elevra Lithium has signed a non-binding Memorandum of Understanding (MoU) with Mangrove Lithium to supply spodumene concentrate from the North American Lithium (NAL) mine, aiming to strengthen its position in the North American electric vehicle sector and support local battery supply chains [1][2][9]. Group 1: Agreement Details - The MoU outlines negotiations for a definitive agreement where Elevra could supply up to 144,000 tonnes per year of spodumene concentrate to Mangrove at market-related prices, ensuring positive cash flow for NAL [4]. - The proposed supply is set for an initial five-year period starting in 2028, ramping up to 144,000 tonnes per annum by 2030, which would account for approximately 46% of estimated sales volumes [5]. Group 2: Processing and Production Capacity - Mangrove plans to process the spodumene concentrate into battery-grade lithium hydroxide or carbonate in Eastern Canada, potentially on-site at NAL, to support a domestic battery supply chain [5]. - The facility is expected to produce 20,000 tonnes of battery-grade lithium annually, sufficient for 500,000 electric vehicles [6]. Group 3: Financial and Strategic Implications - Mangrove has secured $85 million in financing, led by Canada Growth Fund, with participation from various investors, indicating strong financial backing for its operations [8]. - Elevra's CEO emphasized that this partnership enhances cost efficiency and competitiveness while aligning with the Canadian Government's strategy to build a secure critical minerals supply chain [9].