Mangrove Lithium announced a “structured financing” yesterday of up to $85 million USD ($118 million CAD) to accelerate its plans to commercialize and deploy the company’s lithium refinement technology for electric vehicles (EVs) in Canada and abroad.
“This transaction will enable Mangrove Lithium to advance its commercial development in a sector that is critical for Canada.”
The federal government-backed Canada Growth Fund is investing up to $65 million USD ($90 million CAD) of that amount. Existing Mangrove investors, including Bill Gates’ Breakthrough Energy Ventures and BMW iVentures, are also participating.
Alongside this transaction, National Bank of Canada is underwriting a “first-of-its-kind,” $9-million CAD Clean Technology Manufacturing Investment Tax Credit-backed loan.
Mangrove plans to use this funding to support its first commercial lithium refinement facility in Delta, BC, which is located south of Vancouver, near the US border. The company recently completed the first phase of construction on this plant, which it says will produce enough battery-grade materials to power 25,000 EVs per year.
The Delta-based cleantech company also intends to use some of this capital to move towards a second, much larger plant that the feds expect to eventually power 500,000 EVs annually.
Founded in 2017, Mangrove has developed patented electrochemical lithium refining technology designed to convert raw lithium from brines, hard rocks, and clays into battery-grade materials for EVs. It’s a process that Mangrove claims costs less, produces less waste, and requires fewer chemicals than traditional lithium refining. Earlier this week, Mangrove cracked the Global Cleantech 100 list for the fourth consecutive year.
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As The Globe and Mail has reported, while Mangrove has tested its tech on a pilot and commercial demonstration basis, the company has not yet proven it on a scale typical of a major global lithium refinery.
Mangrove co-founder and CEO Saad Dara said in a statement that this funding comes “at a pivotal moment” in the company’s growth, as it looks to “fully commercialize” its tech.
For the Government of Canada, this financing marks the latest investment in its multibillion-dollar push to bolster the country’s critical minerals capabilities, counteract China’s dominance, and ensure Canadian sovereignty.
“This transaction will enable Mangrove Lithium to advance its commercial development in a sector that is critical for Canada,” Canada Growth Fund Investment Management president and CEO Yannick Beaudoin said in a statement.
Feature image courtesy Mangrove Lithium. Photo by Oliver Reusz.