amplifying customer demand propels Mangrove Lithium to unveil plans for a substantial increase in North America's refining capacity, with the launch of a colossal new facility.
Mangrove Lithium, a Canadian lithium refiner, is set to significantly increase its North American lithium refining capacity with a new facility planned to produce 20,000 tonnes of battery-grade lithium annually. This capacity is sufficient to power over 500,000 electric vehicles each year, addressing the growing demand from U.S. battery gigafactories.
Location and Timeline
The exact location of the new facility has not yet been decided, but it will be in North America. The current plant is in Delta, British Columbia, Canada. Construction is underway at Mangrove's first commercial facility in Delta, following a successful $35 million USD funding round. The new plant is planned following the operational startup of Mangrove's existing Delta facility, which is scheduled to begin operations by the end of 2025 with a capacity of about 1,000 tonnes annually. Construction timelines for the new larger facility have not been specified yet.
Advanced Refining Technology
The new refinery will incorporate advanced electrochemical refining technology that produces no waste products and operates at lower costs. Unlike the current plant, the new facility will be capable of processing spodumene concentrate, enabling it to operate further upstream in the lithium supply chain.
Geopolitical Shifts and Customer Demand
The expansion is driven by geopolitical shifts and strong customer demand, particularly from U.S. battery factories seeking a reliable Western lithium supply chain amid rapid electric vehicle market growth. Mangrove has signed Memoranda of Understanding (MoUs) with multiple leading U.S. battery gigafactories, covering offtake for 20,000 tonnes per annum of battery-grade lithium. These MoUs are not binding offtake agreements.
Significance of the New Facility
The new plant will mark a critical move toward reshoring parts of the lithium value chain currently dominated by Chinese processing infrastructure. Mangrove's CEO, Saad Dara, emphasizes the need for a self-reliant, scalable, and sustainable North American lithium future. Annie Liu, Chief Strategy & Commercial Officer at Mangrove, added that having a reliable Western lithium supply chain is critical, and Mangrove delivers this.
China's proposed export ban on key lithium processing and extraction technologies reinforces the urgency for localized alternatives. The MoUs reflect the accelerating interest from global customers who recognize Mangrove as a strategic partner in securing lithium supply.
In Summary
Mangrove Lithium's upcoming North American facility represents a major scale-up with a state-of-the-art refinery aiming for 20,000 tonnes per year lithium production, targeting operational readiness beyond 2025 but with location and exact schedule still to be finalized. The majority of lithium is currently processed in China, making domestic capabilities like Mangrove's increasingly vital due to export restrictions. Mangrove's feedstock and product flexible electrochemical refining technology reduces costs, carbon footprint, waste production, and brings lithium refining where it is needed most.
- The upcoming North American facility by Mangrove Lithium, with a planned capacity of 20,000 tonnes of battery-grade lithium annually, will significantly contribute to the energy sector, powering over 500,000 electric vehicles each year.
- The strategic expansion of Mangrove Lithium is not solely driven by technological advancements but also by geopolitical shifts and strong customer demand, particularly from U.S. battery factories seeking a reliable Western lithium supply chain.
- The new North American facility by Mangrove Lithium will play a significant role in reshoring parts of the lithium value chain currently dominated by Chinese processing infrastructure, contributing to a self-reliant, scalable, and sustainable North American lithium future.
