Elevra, Mangrove sign MoU for spodumene supply

Core Viewpoint - Elevra Lithium has signed a non-binding memorandum of understanding with Mangrove Lithium for the supply of spodumene concentrate, potentially delivering up to 144,000 tonnes per annum starting in 2028, subject to market conditions [1][2]. Group 1: Agreement Details - The agreement could transition into a binding contract if Mangrove invests in a lithium conversion facility by June 2027 [2]. - The initial supply agreement is set to last five years, beginning in 2028 and increasing to 144,000 tonnes per annum by 2030, which would represent approximately 46% of anticipated sales [2]. Group 2: Mangrove's Operations - Mangrove plans to convert spodumene concentrate into battery-grade lithium hydroxide at its facility in eastern Canada, contributing to a domestic battery supply chain [3]. - The facility is designed to produce 20,000 tonnes per annum of battery-grade lithium, sufficient to power 500,000 electric vehicles [3]. Group 3: Technological Feasibility - Mangrove's pilot plant in Delta, Canada, has demonstrated the feasibility of its lithium conversion process, with test work on NAL spodumene expected to conclude by Q3 2026 [4]. - Mangrove has operationalized North America's first commercial electrochemical lithium refining plant with a capacity of 1,000 tonnes per annum [4]. Group 4: Strategic Fit and Financial Backing - Mangrove's partnership with Elevra is seen as a strategic fit to enhance supply chain security and create domestic jobs, aligning with Canada's Critical Minerals Strategy [5]. - Mangrove recently secured $85 million in funding, supporting its proprietary refining platform, which offers environmental and cost advantages [5][6]. Group 5: Expected Benefits - Expected benefits of the agreement include reduced logistics costs due to proximity, a pricing structure that ensures cash flow stability, and potential increased annual output from the NAL Brownfield Expansion [7].