Elevra Lithium Signs Non-Binding Memorandum of Understanding for Spodumene Concentrate offtake with Mangrove Lithium

Core Viewpoint - Elevra Lithium Limited has signed a non-binding Memorandum of Understanding with Mangrove Lithium to supply spodumene concentrate, potentially enhancing the domestic lithium supply chain in Canada and supporting the construction of a lithium conversion facility [1][6]. Group 1: Agreement Details - The non-binding 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 North American Lithium [2][3]. - 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 [3]. Group 2: Strategic Benefits - The collaboration aims to establish a resilient domestic battery supply chain in Canada, reducing reliance on overseas processing and enhancing local job creation [7][9]. - Elevra's supply to a local partner is expected to improve cost efficiency and reinforce the competitiveness of operations, minimizing freight and logistics costs [8][9]. Group 3: Technological and Environmental Aspects - Mangrove has demonstrated the viability of its lithium conversion process through a pilot plant and has constructed North America's first commercial electrochemical lithium refining plant, which has a capacity of 1,000 tonnes per annum [4][5]. - The proprietary refining platform developed by Mangrove eliminates solid waste byproducts and utilizes low-cost, low-carbon electricity, providing both environmental benefits and a cost-competitive alternative to traditional lithium refining methods [5][10]. Group 4: Financial Backing - Mangrove recently secured an US$85 million financing round led by Canada Growth Fund, with participation from notable investors such as Breakthrough Energy and BMW i Ventures, indicating strong financial support for its operations [5].