Elevra Lithium signs spodumene offtake deal with Mangrove Lithium

North American producer Elevra Lithium (ASX:ELV) has signed a non-binding memorandum of understanding with Mangrove Lithium.

The strategic partnership outlines a potential long-term offtake agreement where Elevra would supply spodumene concentrate from its North American Lithium operation to Mangrove's planned conversion facility in Eastern Canada.

The proposed deal targets a supply of up to 144,000 tonnes per year over an initial five-year period starting in 2028.

By 2030, this volume is expected to represent approximately 46% of NAL's estimated sales, providing a stable foundation for the project’s cash flow through a market-related pricing structure equipped with protective floor and ceiling mechanisms.

Mangrove Lithium, which recently secured US$85 million in funding from heavyweights like the Canada Growth Fund and BMW i Ventures, intends to transform this raw concentrate into battery-grade lithium hydroxide.

Their proprietary electrochemical refining platform is designed to be a low-carbon, zero-solid-waste alternative to traditional refining methods.

Once operational, the facility aims to produce 20,000 tonnes of battery-grade lithium annually—enough to power roughly 500,000 EVs.

The collaboration not only secures a critical refining pathway for Elevra but also aligns with the Canadian government's mandate to establish a secure, integrated critical minerals supply chain within North America.

A definitive agreement remains subject to Mangrove's final investment decision, expected by June 2027.