Elevra Lithium Limited announced that it has signed a non-binding Memorandum of Understanding ("MoU") to supply Mangrove Lithium ("Mangrove") with spodumene concentrate produced at North American Lithium ("NAL"). A binding definitive agreement between Elevra and Mangrove may be signed at a future date, subject to Mangrove making a final investment decision prior to June 2027 for construction of a lithium conversion facility and agreement on the final terms of the agreement. Under the terms of the non-binding MoU, Elevra and Mangrove intend to negotiate a definitive agreement under which Elevra could supply up to 144,000 tonnes per year of spodumene concentrate to Mangrove at market related prices, subject to a floor and ceiling price, which would support positive cashflow generation for NAL at any point in the pricing cycle.
The proposed supply would be for an initial period of five (5) years, commencing in 2028 and ramping up to144,000 tonnes per annum by 2030, which would represent approximately 46% of estimated sales volumes. Mangrove intends to process the spodumene concentrate in Eastern Canada into battery-grade lithium hydroxide to support the establishment of a resilient, domestic battery supply chain in Canada. Mangrove's facility would have the capacity to produce 20,000 tonnes of battery-grade lithium a year, which is the equivalent to 500,000 EVs.
Other key supporters include Mitsubishi Corporation, Orion Industrial Ventures, Export Development Canada, InBC, Asahi Kasei, and BDC Capital. Mangrove's proprietary refining platform eliminates solid waste byproducts and leverages low-cost, low-carbon electricity, delivering both environmental benefits and a structurally more cost-competitive alternative to conventional lithium refining. Mangrove have achieved impressive results from their Pilot Plant and continue to refine their process efficiency.
This non-binding MoU is an important commercial milestone that aligns Elevra with a potential local downstream partner - which could improve the economics of NAL. Key benefits are anticipated to include: Reduced freight and logistics costs by supplying spodumene concentrate to a local converter, creating one of the shortest mine-to-chemicals supply chains in the industry; A pricing framework which includes a floor price (and associated ceiling price) that underpins cashflow generation across market cycles while maintaining considerable leverage to lithium prices; and A potential long-term offtake customer for increased annual output from the NAL Brownfield Expansion. Collaboration between Elevra and Mangrorove directly supports the Government of Quebec and Canada's priorities to accelerate the production of domestic battery materials and create end-to-end supply chains.
Converting Elevra's spodumene concentrate in Quebec and Quebec's Battery Ecosystem: Collaboration between Elevra andangrove directly supports the government of Quebec and Canada's priorities To accelerate the production of domestic battery Materials and create end-to- end-to-end supply chain. Mangrove's spodumene concentrate In Quebec, which would support positive cash flow generation for NAL at anypoint in the pricing cycle. The planned supply would be for an initially period of five years, commencing in 20 28 and ramping up to 144,000 tonnes each year of spodumene concentrate offtake customer for increased annual production from the NAL Brownfield expansion.
