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.