Canada Growth Fund and Mangrove Water Technologies, operating as Mangrove Lithium, announced they have closed an up to US$85 million structured financing package designed to accelerate the commercialization of the company’s lithium refining technology in Canada and international markets. The transaction pairs up to US$65 million expected from Canada Growth Fund (CGF) with additional participation from existing backers, including Breakthrough Energy Ventures and BMW i Ventures, as Mangrove Lithium moves from technology validation toward scaled deployment.
The financing was announced alongside a separate C$9 million Clean Technology Manufacturing (CTM) Investment Tax Credit-backed loan underwritten by National Bank of Canada, which closed concurrently with the CGF-led transaction. Mangrove Lithium said the CTM ITC bridge loan structure provides upfront capital against future refundable tax credits tied to eligible capital expenditures, positioning the mechanism as a potential template for future large-scale clean manufacturing financings in Canada.
Mangrove Lithium is developing a feedstock-flexible electrochemical lithium-refining platform that converts a range of lithium inputs into battery-grade lithium hydroxide or lithium carbonate. The company said its process is expected to be more economical than conventional refining methods while also reducing environmental impacts through lower carbon intensity and less waste.
Proceeds from the combined financing are expected to support commissioning and operations of Mangrove Lithium’s first commercial facility in Delta, British Columbia, and to advance the next phase of the company’s buildout. The Delta site—described as a 1,000-tonne-per-year, first-of-a-kind commercial lithium refining facility known as the “Single Stack Plant”—is intended to produce enough battery-grade material to support approximately 25,000 electric vehicles annually, according to the company.
Mangrove Lithium also said it is progressing work on a larger, full-scale plant project, including early engineering and initial site selection efforts in Canada. The planned full-scale plant is expected to have capacity of up to 20,000 tonnes per year, a scale the company said could support battery materials sufficient for more than 500,000 electric vehicles annually. Mangrove Lithium framed the project as part of an effort to strengthen Western supply chain resilience by expanding onshore conversion and refining capacity, reducing reliance on overseas processing and limiting exposure to geopolitical risk and pricing volatility.
For CGF, the investment aligns with its mandate to catalyze private capital into Canadian cleantech by using structured instruments during phases when companies are still de-risking technology and commercial execution. CGF said its participation is intended to help “crowd in” additional private investment while supporting the development of a domestic mining-to-refining lithium supply chain built on Canadian intellectual property and anchored by Canadian headquarters and jobs.
CGF is a C$15 billion arm’s-length investment vehicle created to attract private investment into Canada’s clean economy, with a focus on low-carbon projects, technologies, businesses, and supply chains. The announcement also included a conflicts disclosure noting that PSP Investments—appointed as CGF’s asset manager through a wholly owned subsidiary—held a small ownership stake in Bayerische Motoren Werke AG, the parent of BMW i Ventures, through public market portfolios, with no governance or decision-making influence.
Mangrove Lithium said the company is backed by a mix of strategic and financial investors, including CGF, Breakthrough Energy Ventures, BMW i Ventures, Mitsubishi Corporation, Asahi Kasei, Orion Industrial Ventures, Export Development Canada, and BDC Capital, as it works to expand lithium infrastructure to meet demand for secure, domestic battery production.
KEY QUOTES:
“CGF was created to help Canadian companies and projects scale, and to strengthen Canada’s low-carbon supply chains. This transaction will enable Mangrove Lithium to advance its commercial development in a sector that is critical for Canada.”
Yannick Beaudoin, President and Chief Executive Officer, Canada Growth Fund Investment Management (CGFIM)
“Mangrove Lithium is at a pivotal moment in its growth, and CGF’s investment accelerates our expansion. 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. We look forward to working with CGF and our existing partners to fully commercialize our unique and proprietary technology through widescale deployment.”
Saad Dara, CEO and Co-Founder, Mangrove Lithium
“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. 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.”
Jeffrey Lightburn, Director, Technology & Innovation, National Bank of Canada
