Mangrove Lithium has secured up to US$85 million in structured financing from a group led by the Canada Growth Fund to support the commercialization and deployment of Mangrove Lithium’s lithium-refining technology in Canada and internationally.

Under the financing agreement, CGF will invest up to US$65 in Mangrove with additional funding expected from new and existing investors. CGF is a $15-billion arm’s-length public investment vehicle launched by the federal government to attract private capital to support the growth of Canada’s clean economy.

The CGF-led transaction closed alongside a separate C$9 million Clean Technology Manufacturing Investment Tax Credit–backed loan underwritten by National Bank of Canada. Existing investors, including Breakthrough Energy Ventures and BMW i Ventures, also participated.

The financing is intended to support Delta, B.C.-based Mangrove during its technological and commercial derisking phase, while helping attract additional private capital and advance the development of a Canadian-based, integrated lithium supply chain. CGF said the investment supports the company’s commercial growth while maintaining its headquarters in Canada, protecting Canadian intellectual property and creating skilled jobs.

“CGF was created to help Canadian companies and projects scale, and to strengthen Canada’s low-carbon supply chains,” Yannick Beaudoin, president and CEO of CGF. “This transaction will enable Mangrove Lithium to advance its commercial development in a sector that is critical for Canada.

“CGF is pleased to partner with Mangrove Lithium and to reinforce our important role to help companies create the right conditions to attract private capital.”

Saad Dara, Mangrove’s CEO and co-founder, said CGF’s investment comes at a critical moment in his company’s growth.

“We are proud of the progress to establish Mangrove Lithium as the leader in next-generation lithium processing and refining technologies, enabling a Canadian solution to strengthen the lithium supply chain, enhance energy security, and support the transition to a net-zero future,” he said. “We look forward to working with CGF and our existing partners to fully commercialize our unique and proprietary technology through widescale deployment.”

Mangrove is developing a feedstock-flexible, electrochemical lithium-refining platform capable of producing battery-grade lithium hydroxide or lithium carbonate. Mangrove’s proprietary electrochemical process, initially developed during Dara’s doctoral studies at the University of British Columbia, provides a more sustainable alternative to traditional lithium-refining methods. By eliminating sodium-sulfate waste and harmful chemical reagents, the company reduces production costs and the environmental impact of lithium refining, Dara previously told Connect.

Founded in 2017, Mangrove has rapidly grown into a leader in lithium- processing technology. At a pilot-plant facility in Delta, Mangrove demonstrated its ability to refine lithium from a range of sources, including hard rock and recycled batteries, into high-purity lithium hydroxide and lithium carbonate.

That success led to the development of the company first commercial lithium-refining facility in Delta. Mangrove completed construction of the first phase of the facility, which has a capacity of 1,000 tonnes per year. The single-stack plant is expected to produce enough battery-grade material to power approximately 25,000 electric vehicles annually.

Proceeds from the financing will support operations at the Delta facility and advance development of a larger project expected to power more than 500,000 EVs per year.

“We are excited to have provided a C$9 million credit facility, backed by the new CTM ITC-program, in support of our long-time client Mangrove Lithium.” said Jeffrey Lightburn, director of technology and innovation at National Bank. “This demonstrates the viability of an important financial tool for Mangrove Lithium’s future project financings and shows our commitment to their growth through the use of such an innovative, industry-leading mechanism..”

Mangrove is also advancing early engineering and site selection for its first full-scale plant in Canada. Dara previously told Connect that the facility would likely be built in Eastern Canada, closer to mines in Ontario and Quebec. The proposed facility is expected to have an annual capacity of 20,000 tonnes and is intended to strengthen Western supply-chain resiliency by bringing large-scale lithium-refining onshore and reducing reliance on overseas processing.

The federal government said financing will strengthen Canada’s EV-battery supply chain and economic resilience, creating high-quality, skilled jobs for Canadians.

“To compete and lead on the global stage, Canada must invest in the industries that matter,” said federal Industry Minister Mélanie Joly. “Canada is focused on advancing critical minerals exploration and extraction and ensuring that the minerals mined in Canada are refined in Canada.

“By investing in homegrown lithium refining technologies, we are reinforcing our economic resilience, securing our natural resource sovereignty, and building the domestic supply chains that will power the next generation of Canadian industries.”

Such partnerships ensure that the newly created jobs, the developed expertise, and the technology will drive long-term economic growth, she added.

The federal and provincial governments, along with Canadian industrial real estate and technology developers, aim to establish Canada as a global leader in sustainable battery production.

Pictured: Mangrove Lithium research, development and pilot-project plant in Delta, B.C.

Photo: Courtesy of Mangrove Lithium