Why North America Is Finally Building Its Own Battery Chain

Elevra and Mangrove sign a spodumene supply MOU that could close Canada's battery materials gap domestically

19 May 2026

Canada’s push to build an independent battery supply chain advanced on Feb. 10, when Elevra Lithium and Mangrove Lithium signed a non-binding memorandum of understanding. The agreement establishes a framework to process Québec-mined spodumene into battery-grade lithium hydroxide within Eastern Canada, eliminating the traditional reliance on overseas shipping for chemical refinement.

Under the proposed terms, Elevra would supply up to 144,000 tonnes of spodumene concentrate annually from its North American Lithium operation in Québec. The deliveries are projected to begin in 2028 and reach full capacity by 2030, representing nearly half of Elevra’s anticipated annual sales. This feedstock is earmarked for Mangrove’s planned Eastern Canada refinery, an facility designed to produce 20,000 tonnes of battery-grade lithium hydroxide per year—enough capacity to power roughly 500,000 electric vehicles.

Mangrove intends to utilize a proprietary electrochemical refining process that runs on Québec’s low-cost hydroelectric grid. Company documentation indicates the technology eliminates solid waste byproducts and lowers the overall carbon footprint compared to conventional conversion methods. A commercial-scale plant using the system already operates at a capacity of 1,000 tonnes per year, and pilot testing on the Québec feedstock is scheduled for completion by the third quarter of 2026.

The venture is backed by a recent 85 million dollar funding round for Mangrove, drawing capital from the Canada Growth Fund, BMW i Ventures, Breakthrough Energy, and Mitsubishi Corporation. Industry analysts noted the investment reflects growing commercial interest in regionalizing critical mineral supply chains. Executives from both companies stated that keeping processing operations within Canada improves project economics, reduces logistical expenses, and retains the economic value of domestic natural resources.

Binding terms remain conditional on Mangrove reaching a final investment decision before June 2027. Conversion infrastructure has historically lagged mining timelines in Canada, and the expansion faces potential execution risks. Yet the framework establishes specific price floors and volume schedules. If the final investment decisions are secured, the agreement could significantly alter the architecture of North American battery manufacturing in the years ahead.