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    Elevra–Mangrove NAL offtake MoU: project economics and supply risk lens

    February 9, 2026|

    Reviewed by Tom Sullivan

    Elevra–Mangrove NAL offtake MoU: project economics and supply risk lens

    First reported on MINING.com

    30 Second Briefing

    Elevra Lithium has signed a non-binding MoU to supply Mangrove Lithium with up to 144,000 tonnes per year of NAL spodumene concentrate from 2028, ramping to that level by 2030 and covering about 46% of projected sales volumes, on market-linked pricing with floor and ceiling protection. Mangrove plans a 20,000 t/y lithium hydroxide or carbonate plant in Eastern Canada, potentially on-site at NAL, following a final investment decision by June 2027. The project builds on Mangrove’s 1,000 t/y electrochemical refining plant and an $85 million funding round led by Canada Growth Fund.

    Technical Brief

    • MoU remains non-binding and contingent on Mangrove’s FID for a conversion facility before June 2027.
    • Supply will be sourced from the existing North American Lithium (NAL) operation in Quebec’s Abitibi region.
    • Proposed offtake pricing is market-linked with explicit floor and ceiling bands to stabilise NAL cashflow.
    • Initial term of the contemplated offtake is five years, with volumes ramping during the first two years.
    • Mangrove has already built and commissioned a 1,000 t/y electrochemical lithium refining plant for product qualification.
    • Pilot-scale testwork on NAL spodumene is underway at Mangrove’s Delta, British Columbia facility, with results due Q3 CY26.
    • Mangrove recently secured US$85 million financing led by Canada Growth Fund, alongside OEM and strategic investors.
    • Locating conversion in Eastern Canada, potentially on-site at NAL, reduces logistics complexity and intermediate transport of concentrate.

    Our Take

    With Mangrove Lithium backed by Canada Growth Fund, Breakthrough Energy and several strategic investors from Japan and Canada, the NAL offtake positions Quebec lithium within a capital pool that is explicitly targeting low-carbon refining routes rather than just raw concentrate exports.

    The planned ramp-up to 144,000 tpa by 2030 equating to roughly 46% of Elevra Lithium’s estimated sales volumes suggests the NAL stream will be a cornerstone feedstock for Mangrove’s first commercial electrochemical refining plant, giving that facility unusual security of supply compared with many early-stage North American converters in our database.

    Alongside other battery-materials build-outs such as Northern Graphite’s planned anode plant at Yanbu (25,000 tpa from 2028), this Quebec–British Columbia–Saudi axis indicates that Canadian-linked critical mineral players are increasingly structuring projects around integrated midstream capacity rather than relying solely on Asian conversion.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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