Canadian Firm Closes $10M Series A to Expand Lithium Refining Capacity

Mangrove Lithium, a Vancouver based company, has closed a USD $10 million Series A investment round led by Breakthrough Energy Ventures (BEV) with participation from existing investor BDC Capital’s Cleantech Practice (BDC). The company will use the investment to build its first operational, commercial-scale plant with the intention of expanding lithium refining capacity in the Western Hemisphere.

Benchmark Mineral Intelligence forecasts a global supply gap of 4.3 million tons of lithium carbonate and lithium hydroxide by 2040. The supply of high-purity, battery grade lithium will be critical to the rapid adoption of electric vehicles (EV). A shortage could keep millions of EVs from being built.

Mangrove claims to have developed a feedstock-flexible, modular platform to produce battery-grade lithium hydroxide and lithium carbonate. It does so cost-effectively by using brines, hard-rock, clays, and battery recycling streams to address this supply gap, says the firm.

“A sufficient supply of high-purity lithium is critical if the world is going to reach over 70% EV penetration by 2040. There is a strong risk of this ambition being derailed if the emerging supply deficit is not addressed today,” said Mangrove CEO Saad Dara.

Mangrove’s initial focus is on the lithium brines that represent 60% of global deposits. The company states that its innovation eliminates complex steps in the conventional refining processes for lithium brines. In addition to eliminating CapEx traditionally associated with conventional refining methods, Mangrove’s technology has the potential to reduce OpEx by as much as 40% in lithium hydroxide production from brines, claims the firm.

“Transitioning to EVs is a critical step in reducing global greenhouse gas emissions. Mangrove’s technology solves a huge constraint in electrifying the world’s vehicle fleet by enabling the lowest-cost, highest-purity lithium hydroxide – at a scale of hundreds of millions of vehicles – and can be applied throughout the supply chain,” said Carmichael Roberts, Breakthrough Energy Ventures.