Elevra Lithium Limited could supply up to 144,000 tonnes of spodumene concentrate per year to Canada, after it signed a non-binding memorandum of understanding (MoU) with Mangrove Lithium.

While a binding definitive agreement between Elevra and Mangrove may be signed at a future date, the Australian miner said the MoU aligns the company with a potential local downstream partner, especially for its Quebec-based North American Lithium (NAL) site.

Elevra managing director and chief executive officer (CEO) Lucas Dow said the MoU with Mangrove strengthens Elevra’s commercial position, while supporting the Canadian government with a local supply chain.

“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,” Dow said.

Mangrove chief commercial and strategy officer Annie Lu said partnering with Elevra to source Canadian spodumene concentrate is a strategic fit for the company.

“Today, most lithium refining happens overseas, resulting in the loss of downstream value from Canada’s raw resources,” she said.

“By locating conversion close to the feedstock, we enhance supply chain security, support the creation of high-value domestic jobs, and advance Canada’s critical minerals strategy.”

Elevra said key benefits for the miner included reduced freight and logistics costs by supplying spodumene concentrate to a local converter, creating one of the shortest mine-to-chemicals chains in the industry.

It added that a pricing framework – which includes a floor price, and associated ceiling price – underpins cashflow generation across market cycles while maintaining “considerable leverage” to lithium prices.

Elevra said the agreement created the potential for a long-term off-take customer for increased annual output from the NAL brownfield expansion.

The proposed supply would be for an initial five years, commencing in 2028, and ramping up to 144,000 tonnes per annum by 2030. This amount would represent roughly 46 per cent of estimated sales volumes.

Mangrove intends to process the spodumene concentrate in eastern Canada into battery-grade lithium hydroxide to support the establishment of a domestic battery supply chain in the country.

Elevra said Mangrove has demonstrated the viability of its lithium conversion process in a pilot plant in Delta, Canada, as test work is currently being completed on NAL spodumene with results expected in the third quarter of the 2026 calendar year.

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