Elevra, Mangrove Lithium ink offtake deal for NAL project in Quebec

Staff Writer | February 9, 2026 | 1:15 pm Battery Metals Canada Lithium

Sayona, Piedmont to create lithium giant in $623-million merger

A haul truck at the North American Lithium (NAL) mine in Quebec. Credit: Sayona Mining

Elevra Lithium (ASX: ELV; NASDAQ: ELVR) has inked an offtake agreement to supply spodumene concentrates produced at its North American Lithium (NAL) operations to Canada’s Mangrove Lithium.

Under the terms of a non-binding memorandum of understanding (MOU) signed on Monday, the parties intend to negotiate a definitive agreement under which Elevra could supply up to 144,000 tonnes per year of spodumene concentrate to Mangrove at market-related prices, subject to a floor and ceiling price.

The proposed supply would be for an initial period of five years, commencing in 2028 and ramping up to 144,000 tonnes per annum by 2030, which would represent approximately 46% of the estimated sales volumes.

A binding definitive agreement between Elevra and Mangrove may be signed at a future date, subject to Mangrove making a final investment decision prior to June 2027 for construction of a lithium conversion facility and agreement on the final terms, the companies said.

Elevra was formed in 2025 through a merger of equals between Australia’s Sayona Mining and US-based Piedmont Lithium. The tie-up brought together the two owners of the NAL project in Quebec’s Abitibi region.

At the time, Sayona said the $623 million all-stock deal would help to consolidate its Canadian operations and strengthen its exposure to the North American electric vehicle sector.

Building Canadian lithium supply

British Columbia-based Mangrove said it intends to process the NAL spodumene concentrates in Eastern Canada, potentially on site, into battery-grade lithium hydroxide or carbonate to support the establishment of a resilient domestic battery supply chain.

Mangrove’s facility would have the capacity to produce 20,000 tonnes of battery-grade lithium a year, which is the equivalent of 500,000 EVs. The company said it has demonstrated the viability of its lithium conversion process in a pilot plant located in Delta, BC.

Test work is being completed on NAL spodumene, and results are expected in the third quarter of fiscal 2026.

Alongside the pilot plant, Mangrove said it has constructed and commissioned North America’s first commercial electrochemical lithium refining plant, with a 1,000 tonnes per annum capacity, which will be used for customer product qualification programs.

Mangrove recently announced an $85 million 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, InBC, Asahi Kasei and BDC Capital.

“Signing this non-binding memorandum of understanding with Mangrove marks an important step in strengthening our commercial position while supporting the Canadian government’s priority to build a secure critical minerals supply chain,” Elevra CEO Lucas Dow said in a news release.

“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.”

“Partnering with Elevra to source Canadian spodumene concentrate is a natural strategic fit for Mangrove,” Mangrove chief commercial and strategy officer Annie Liu added.