Nestled within inconspicuous industrial premises in Delta, British Columbia, alongside businesses specializing in plumbing supplies, ladders, and fitness gear, lies North America’s inaugural electrochemical lithium refining plant. Situated here, it seems unlikely for Canada to challenge China’s dominant position in lithium refining, a vital mineral in global supply chains drawing attention from Washington to Ottawa and beyond.
During an exclusive tour, Mangrove Lithium’s CEO and founder, Saad Dara, humorously likened the facility to a “clown building.” Amidst the whirring machinery, he gestured towards various sections of the plant, including the research and development lab. The company recently commemorated the plant’s inauguration, marking the culmination of a lengthy journey.
Starting as a one-person endeavor in 2013, evolving from Dara’s thesis project, the idea transformed into a company in 2018. Over the years, Mangrove Lithium has grown to around 75 employees. Dara expressed pride in the design and construction of the unique plant, converting pilot operations into a fully functional facility. The company aims to commence production of natural-grade materials soon, with plans to achieve full commercialization of the technology.
As global trade tensions escalate and demand surges for metals like copper, nickel, and lithium crucial for electrification and defense, countries are striving to secure their supply chains. Recognizing lithium’s significance, the Canadian government has classified it as a critical mineral, essential for battery production and the shift towards renewable energy.
Despite Canada’s lithium production, a substantial portion is mined and refined in South America, Australia, and predominantly China. With China dominating all six segments of the lithium market, including mining, refining, and battery assembly, Canada lacks facilities for EV assembly, active materials, and recycling. However, Mangrove’s refinery launch signifies a pivotal step in establishing a previously absent lithium supply chain in Canada.
Geoff McCarney, an associate professor at the University of Ottawa, emphasized the plant’s role in enhancing Canada’s resilience in critical mineral production. He highlighted the challenges posed by China’s market control and the importance of diversifying supply sources to mitigate supply disruptions.
Mangrove’s Delta facility boasts the capability to produce battery-grade lithium for approximately 25,000 electric vehicles annually. Utilizing electrochemical refining technology, the company aims for a sustainable and cost-effective approach, eliminating chemical-intensive processes prevalent in traditional refining methods.
The inauguration of the plant signifies a significant milestone for Canada’s critical minerals value chain, fostering energy security, creating local employment opportunities, and advancing a domestic battery supply chain. Mangrove’s expansion plans in Eastern Canada further underscore the country’s commitment to bolstering its lithium supply and reducing dependence on foreign refining.