North American lithium producer Elevra Lithium has executed a binding Spodumene Concentrate Supply Agreement with Mangrove Lithium for the long-term supply of spodumene concentrate produced at North American Lithium (NAL) in Québec.
The Agreement follows the non-binding Memorandum of Understanding (MoU) announced by Elevra on 10 February 20261. Since that time, Elevra and Mangrove have finalised technical, logistics and commercial terms, resulting in a definitive, binding Agreement (subject to achievement of agreed conditions precedent) for the supply of spodumene concentrate to Mangrove’s 20,000 tonne per annum LCE (Lithium Carbonate Equivalent) conversion facility proposed to be developed in Eastern Canada.
Elevra’s Chief Executive Officer and Managing Director, Lucas Dow, said: “This binding agreement with Mangrove Lithium is a significant step forward from the MoU we announced. It provides Elevra with a long-term local customer for NAL production on attractive terms, backed by a price floor set above our expected cost of production and with no price ceiling to limit potential upside. Supplying a customer located close to NAL also allows us to avoid the seaborne freight costs associated with shipping to international customers, which further supports our margins.”
Saad Dara, Mangrove Lithium CEO and Founder, commented: “We are very pleased to have converted the MoU with Elevra into a binding supply agreement. This is a significant step forward for Mangrove and for the development of a Canadian lithium supply chain. It provides greater certainty around a key feedstock source for our planned Eastern Canada lithium conversion facility and brings together an integrated mine-to-chemicals supply chain within Canada, which is central to Mangrove’s strategy for commercialization of our proprietary technology. The partnership with Elevra also helps establish an integrated critical minerals infrastructure needed to strengthen Norh America’s energy security and battery materials competitiveness, while reducing reliance on overseas processing.”
“The support that both Mangrove and Elevra have received from the Canada Growth Fund further demonstrates the strategic importance being placed on developing this capability in Canada. We are proud to be working with Elevra to advance the lithium supply chain that can support Canada’s growing battery manufacturing ecosystem and contribute to energy security across the G7.”
The Agreement has an initial term of seven (7) years, increased from five years under the MoU, with a further seven-year (7) renewal, unless either party elects to terminate. Consistent with the arrangements contemplated under the MoU, performance under the Agreement remains subject to Mangrove securing the necessary project financing, taking a positive Final Investment Decision (FID), and achieving sustained commercial operations of no less than 50% of nameplate capacity.
