Located in Delta, British Columbia, within a cluster of unassuming industrial buildings, North America’s inaugural electrochemical lithium refining plant stands among businesses specializing in various products. This unique setting is where Canada has established a foothold to challenge China’s dominance in lithium refining, a critical mineral that has garnered attention from policymakers in the United States and Canada.
CEO and founder of Mangrove Lithium, Saad Dara, humorously likened the facility to a “clown building” during a private tour, showcasing different sections including the research and development lab. The company recently celebrated the grand opening of the plant after years of dedicated effort to reach this milestone.
Beginning as a one-person venture in 2013, Dara’s idea evolved into a full-fledged company in 2018, with around 75 employees now working at the facility. With a focus on commercializing their technology, the company aims to start producing natural-grade materials by the summer, contributing to the full commercialization of their innovative process.
Amid escalating trade tensions and increasing demand for metals like lithium for applications such as electrification and defense, governments are prioritizing securing supply chains. Recognizing lithium’s significance in battery production and renewable energy, the Canadian government has designated it as a critical mineral.
China currently dominates the lithium market with its control over mining, refining, active materials, battery assembly, electric vehicle assembly, and recycling segments. Canada’s entry into lithium refining is a crucial step towards establishing a domestic supply chain that has been lacking. This move enhances Canada’s resiliency and reduces dependence on foreign refining capabilities.
The newly opened facility in Delta has the capacity to produce battery-grade lithium for approximately 25,000 electric vehicles annually. Utilizing electrochemical refining technology, the company aims to set a new standard in sustainable lithium processing while offering a cost-competitive alternative to traditional refining methods.
Geoff McCarney, an associate professor at the University of Ottawa, emphasized the significance of the plant in enhancing Canada’s resilience in the critical minerals market. The facility represents a pivotal moment in Canada’s efforts to secure its critical minerals value chain, create local jobs, and advance the country’s clean economy.
Mangrove Lithium has announced plans for a facility in Eastern Canada that would further expand the country’s lithium supply, potentially providing enough material for 500,000 electric vehicles annually. While these developments mitigate market volatility risks, they also raise questions about sustainable sourcing practices and Indigenous rights considerations in the mining sector.
