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Elevra Lithium (ASX:ELV) has achieved a commercial milestone with a potential deal to supply spodumene to the hungry North American market. The non-binding memorandum of understanding (MoU) with Mangrove Lithium could see spodumene concentrate produced at the North American Lithium (NAL) facility and aligns the company with a potential local downstream partner.
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Under the MoU, Elevra could supply Mangrove with up to 144,000 tonnes per year of spodumene. The proposed supply would be for an initial five years, starting CY28, and ramping up to 144K tonnes per annum by CY30.
Mangrove, which is developing a modular, scalable, electrochemical refining platform that converts a wide variety of feedstocks directly into battery-grade lithium hydroxide, intends to process the spodumene concentrate in eastern Canada.
Elevra’s MD and CEO, Lucas Dow, said Mangrove’s facility may have the capacity to produce 20K tonnes of battery-grade lithium a year, equivalent to fuelling 500K EVs.
“Mangrove has achieved impressive results from their pilot plant and continues to refine their process efficiency,” Mr Dow said Tuesday. “By supplying North American Lithium’s production to a local partner, we expect to improve our cost efficiency and reinforce the competitiveness of our operations.”
Mr Dow added the non-binding MoU strengthens Elevra’s commercial position and supports the Canadian government’s priority to build a secure critical minerals supply chain.
Elevra has several North American lithium projects across Canada and the U.S. In Québec, its key assets comprise the North American Lithium (100%) project and a 60% stake in the Moblan lithium project.
In the U.S., the company has the Carolina lithium project.
Mangrove recently announced a US$85M financing round led by Canada Growth Fund, with support from returning investors Breakthrough Energy and BMW i Ventures. Other key supporters include Mitsubishi Corporation, Orion Industrial Ventures, Export Development Canada, Asahi Kasei, and BDC Capital.
ELV is up +11.8% this morning, to sell at $7.20/sh.
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