Photo credit: Mangrove Lithium
DELTA – Mangrove Lithium has received a $9 million Clean Technology Manufacturing Tax Credit underwritten by the National Bank of Canada.
Mangrove’s early investors Breakthrough Energy Ventures and BMW i-Ventures also participated in the transaction for the company, which recently completed Phase 1 construction for its 1,000 tonne per annum first-of-a-kind commercial lithium refining facility in Delta, which will produce enough battery-grade materials to power approximately 25,000 electric vehicles annually.
Mangrove Lithium is building a feedstock-flexible, electrochemical lithium refining platform that produces battery-grade lithium hydroxide or lithium carbonate. The process is expected to be more economical than conventional refining methods, while also offering environmental benefits, including lower carbon intensity and reduced waste.
“Mangrove Lithium is at a pivotal moment in its growth, and CGF’s investment accelerates our expansion,” says Mangrove Lithium CEO and Co-founder Saad Dara. “We are proud of the progress to establish Mangrove Lithium as the leader in next-generation lithium processing and refining technologies, enabling a Canadian solution to strengthen the lithium supply chain, enhance energy security, and support the transition to a net-zero future. We look forward to working with CGF and our existing partners to fully commercialize our unique and proprietary technology through widescale deployment”.
The tax credit is a federal incentive designed to accelerate investment in clean technology manufacturing by providing refundable tax credits for qualifying projects, such as the Single Stack Plant. The proceeds from this transaction will support operations at Mangrove’s first Single Stack Plant while also advancing development of its next project, expected to power more than 500,000 electric vehicles annually.
“CGF was created to help Canadian companies and projects scale, and to strengthen Canada’s low-carbon supply chains. This transaction will enable Mangrove Lithium to advance its commercial development in a sector that is critical for Canada,” says Canada Growth Fund Investment Management President and CEO Yannick Beaudoin. “CGF is pleased to partner with Mangrove Lithium and to reinforce our important role to help companies create the right conditions to attract private capital.”
National Bank of Canada Director of Technology and Innovation Jeffrey Lightburn adds “We are excited to have provided a C$9 million credit facility, backed by the new CTM ITC-program, in support of our long-time client Mangrove Lithium. This demonstrates the viability of an important financial tool for Mangrove Lithium’s future project financings and shows our commitment to their growth through the use of such an innovative, industry-leading mechanism”.
In addition to Phase 1 construction of the Single Stack Plant, Mangrove Lithium has been advancing work towards its first full-scale plant, including completing early engineering and commencing site selection in Canada. It is expected to have a capacity of 20,000 tonnes per year. By bringing large-scale lithium conversion and refining onshore, it is expected to reduce reliance on overseas processing, and ensure that more of the value created from critical minerals remains within North America.
CGF to invest up to US$65 million in Mangrove Lithium with additional funding expected from both new and existing investors. The C$9 million CTM ITC-backed loan from the NBC provides additional debt capital to the Company based on certain capital expenditures including qualifying manufacturing and are based on processing activities of 6 key critical minerals, including lithium.
Mangrove Lithium is a lithium refining technology company headquartered in Delta, with a mission to build scalable, battery-grade lithium production across North America and beyond. The Company has developed a patented electrochemical refining technology that converts diverse lithium feedstocks into high-purity battery-grade lithium hydroxide and carbonate. Mangrove Lithium’s platform enables economic lithium production and is designed to integrate seamlessly into upstream and downstream supply chains.
Business Examiner
