A Big Lithium Bet Aims to Recharge EV Supply Lines

Mangrove plans a major North American refinery as firms sign non-binding MoUs for future lithium offtake

24 Jul 2025

North America’s electric vehicle industry is set for another expansion as Mangrove Lithium plans a large refinery that could ease the region’s shortage of battery-grade material. The proposed facility has drawn interest from manufacturers seeking more reliable access to refined lithium.

Mangrove aims to build a plant capable of producing up to 20,000 tonnes of battery-grade lithium a year, an amount the company says could support output of about 500,000 electric vehicles. Sites in both the US and Canada remain under review, reflecting a broader lack of refining capacity across the region.

Executives said the project responds to pressure from battery producers that want closer suppliers and shorter delivery times. Several gigafactory operators have signed non-binding memorandums of understanding for potential offtake once the plant is operating, although binding deals have not been disclosed. One senior leader said the project would help close a “crucial” refining gap that has held back regional growth.

Analysts at Benchmark Mineral Intelligence have warned that North America faces a significant shortage of battery-grade lithium unless new refining capacity moves ahead. Mangrove’s proposal is viewed by some as a rare point of progress in an otherwise tight market.

The plan comes as governments expand incentives for domestic production and as automakers seek long-term access to critical inputs. A stable regional source of refined lithium could limit price swings, shipping delays and geopolitical risks that have complicated supply planning.

High construction costs, complex permitting and volatile lithium prices could still affect the project’s schedule. Analysts note that these factors have slowed similar efforts. Even so, observers say Mangrove’s initiative may encourage further investment in refining across the US and Canada.

As the region seeks a more resilient EV supply chain, projects such as Mangrove’s proposed refinery are expected to play a central role in strengthening local production and improving North America’s competitiveness in the global battery industry.