Mangrove Secures $85mn to Expand Lithium Refining

Canada Growth Fund leads structured financing to scale battery-grade production and reduce reliance on Asian processing

2 Mar 2026

Mangrove Lithium has secured up to $85mn in structured financing to expand its lithium refining operations in Canada, as North America seeks to reduce reliance on overseas processing for electric vehicle batteries.

The package is led by the Canada Growth Fund, which has committed $65mn, with additional participation from existing investors including BMW i Ventures and Breakthrough Energy Ventures. The financing will be released in stages rather than upfront and is partly supported by a loan backed by Canada’s Clean Technology Manufacturing investment tax credit.

The Vancouver-based company plans to use the funds to move from pilot operations to commercial production at its facility in Delta, British Columbia. The site is intended to produce battery-grade lithium chemicals for use in electric vehicles.

Although lithium mining is expanding across North America, most refining capacity remains concentrated in Asia. Automakers are investing heavily in new battery and vehicle assembly plants in the US and Canada, increasing pressure to secure local supplies of processed materials that meet eligibility requirements for government incentives and reduce exposure to geopolitical risks.

Refining has emerged as a key gap in the regional battery supply chain. Mangrove says its electrochemical refining process is designed to reduce waste and energy use compared with conventional methods. The company plans to expand capacity in modular stages, rather than through a single large-scale development, a strategy that could limit capital exposure and provide flexibility amid volatile lithium prices.

Canadian policymakers have promoted domestic processing as central to building a competitive battery ecosystem. Federal tax credits and other clean technology incentives have improved project economics and encouraged investment in higher-value segments of the supply chain.

The company now faces the challenge of scaling from demonstration to full commercial output, a transition that requires consistent production of battery-grade material at industrial volumes. Established refiners in Asia continue to benefit from scale and operational experience.

Industry analysts increasingly view refining as a strategic battleground in the global shift to electric vehicles, as governments seek greater control over critical minerals supply chains.