Elevra Lithium Completes Binding Supply Agreement with Mangrove Lithium
Rhea-AI Summary
Elevra Lithium (ASX:ELV, NASDAQ:ELVR) has executed a binding Spodumene Concentrate Supply Agreement with Mangrove Lithium for long-term supply from the North American Lithium (NAL) operation in Québec to Mangrove’s proposed 20,000 tpa LCE conversion facility in Eastern Canada.
The Agreement has an initial 7-year term, extendable by a further seven years unless terminated, and is subject to conditions precedent including Mangrove securing project financing, taking a positive Final Investment Decision by 31 December 2028, and reaching commercial operations at no less than 50% of nameplate capacity within three years thereafter.
Annual contracted volumes are 122,000 dmt in Year 1 and 144,000 dmt from Year 2 on a take-or-pay basis, with options for Mangrove to increase volumes by up to 20% annually and purchase up to 72,000 dmt before commercial operations. Pricing is market-linked with a floor that Elevra expects to be above NAL’s cost of production and no price ceiling, and domestic deliveries are expected to avoid ocean freight costs. Both companies have separate backing from the Canada Growth Fund.
Positive
- 7+7 year supply term with take-or-pay structure and renewal option
- 122,000 dmt Year 1 and 144,000 dmt from Year 2 contracted volumes
- Option for Mangrove to increase annual volume by up to 20%, capacity permitting
- Market-linked pricing with floor above expected NAL production cost
- No price ceiling, preserving Elevra’s full upside to higher spodumene prices
- Domestic deliveries expected to avoid seaborne freight costs to international customers
- Shared backing from Canada Growth Fund, including up to US$85m for Mangrove and convertible notes for Elevra
Negative
- Agreement effectiveness subject to Mangrove securing project financing and positive FID
- Mangrove must achieve FID by 31 December 2028 or conditions may not be met
- Commercial Operation required within three years of FID at ≥50% capacity
- Pre-commercial purchases capped at 72,000 dmt per 12 months, limiting early volumes
Market Reaction – ELVR
Following this news, ELVR has gained 7.76%, reflecting a notable positive market reaction. Our momentum scanner has triggered 8 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $66.34. Trading volume is elevated at 2.4x the average, suggesting notable buying interest.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 17 | FY26 report advisory | Neutral | -6.9% | Company scheduled release of its FY26 full-year report and investor webcast. |
| Aug 07 | Asset sale completion | Positive | +8.1% | Elevra completed sale of Western Australian pegmatite rights for cash, shares, and royalties. |
| Jul 27 | Quarterly operating report | Negative | -6.5% | Lower spodumene sales and revenue accompanied improved production, recovery, and expansion financing. |
| Jul 22 | Quarterly report advisory | Neutral | -1.1% | Company scheduled its June quarterly activities report and investor webcast. |
| Jun 29 | Expansion groundbreaking | Positive | +1.9% | Elevra broke ground on the fully funded NAL Expansion project. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history showed mixed reactions, with three events aligned with their apparent sentiment and two neutral scheduling notices diverging.
Key Terms
spodumene concentrate technical
lithium carbonate equivalent technical
take or pay financial
final investment decision financial
convertible notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BRISBANE, Australia, Aug. 21, 2026 (GLOBE NEWSWIRE) -- North American lithium producer Elevra Lithium Limited (“Elevra”) (ASX:ELV; NASDAQ:ELVR) is pleased to announce that it has executed a binding Spodumene Concentrate Supply Agreement (the “Agreement”) with Mangrove Lithium (“Mangrove”) for the long-term supply of spodumene concentrate produced at North American Lithium (“NAL”) in Québec.
The Agreement follows the non-binding Memorandum of Understanding (“MoU”) announced by Elevra on 10 February 20261. Since that time, Elevra and Mangrove have finalised technical, logistics and commercial terms, resulting in a definitive, binding Agreement (subject to achievement of agreed conditions precedent) for the supply of spodumene concentrate to Mangrove’s 20,000 tonne per annum LCE (Lithium Carbonate Equivalent) conversion facility proposed to be developed in Eastern Canada.
Elevra’s Chief Executive Officer and Managing Director, Lucas Dow, said: “This binding agreement with Mangrove Lithium is a significant step forward from the MoU we announced. It provides Elevra with a long-term local customer for NAL production on attractive terms, backed by a price floor set above our expected cost of production and with no price ceiling to limit potential upside. Supplying a customer located close to NAL also allows us to avoid the seaborne freight costs associated with shipping to international customers, which further supports our margins.
“We are pleased that both Elevra and Mangrove Lithium have separately attracted the support of the Canada Growth Fund. That shared backing is a strong signal of the Canadian government’s commitment to building a domestic lithium supply chain.”
Saad Dara, Mangrove Lithium CEO and Founder, commented: “We are very pleased to have converted the MoU with Elevra into a binding supply agreement. This is a significant step forward for Mangrove and for the development of a Canadian lithium supply chain. It provides greater certainty around a key feedstock source for our planned Eastern Canada lithium conversion facility and brings together an integrated mine-to-chemicals supply chain within Canada, which is central to Mangrove’s strategy for commercialisation of our proprietary technology. The partnership with Elevra also helps establish an integrated critical minerals infrastructure needed to strengthen North America’s energy security and battery materials competitiveness, while reducing reliance on overseas processing.”
“The support that both Mangrove and Elevra have received from the Canada Growth Fund further demonstrates the strategic importance being placed on developing this capability in Canada. We are proud to be working with Elevra to advance the lithium supply chain that can support Canada’s growing battery manufacturing ecosystem and contribute to energy security across the G7.”
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1 See ASX announcement “Elevra Signs Non-Binding Offtake MOU with Mangrove Lithium” dated 10 February 2026.
Contract Term and Volumes
The Agreement has an initial term of seven (7) years, increased from five years under the MoU, with a further seven-year (7) renewal, unless either party elects to terminate. Consistent with the arrangements contemplated under the MoU, performance under the Agreement remains subject to Mangrove securing the necessary project financing, taking a positive Final Investment Decision (FID), and achieving sustained commercial operations of no less than
Contracted annual volumes total 122,000 dry metric tonnes (“dmt”) in Year 1 and 144,000 dmt of spodumene concentrate
Under the terms of the Agreement, Mangrove must achieve FID by 31 December 2028 and Commercial Operation no more than three years later.
Market-Linked Pricing with Downside Protection
Under the Agreement, the price payable to Elevra is linked to market-based pricing for spodumene concentrate. The final price will reflect the long-term purchase commitment made by Mangrove and will be adjusted to account for product grade (as is industry practice).
Importantly, the Agreement includes a floor price which Management expects to be above NAL’s cost of production, providing Elevra with downside price protection over the life of the Agreement. Further, and in contrast to the pricing contemplated under the MoU, the Agreement contains no price ceiling and preserves Elevra’s full exposure to any future increase in spodumene concentrate prices.
Benefits of Local Delivery
Mangrove’s conversion facility, which is subject to Mangrove obtaining financing and announcing a Final Investment Decision, is expected to be located within Eastern Canada and will include both spodumene concentrate processing and lithium refining using Mangrove’s proprietary electrochemical technology. As deliveries under the Agreement will be to a domestic North American customer, Elevra expects to avoid the ocean freight costs that it would otherwise incur delivering spodumene concentrate to international customers.
Canadian Government Support through Canada Growth Fund
Mangrove previously secured up to US
Elevra considers that this shared support from CGF, a C
About Mangrove Lithium
Mangrove Lithium is a lithium refining technology company headquartered in Delta, British Columbia, Canada, with a mission to build scalable, battery-grade lithium production across North America and beyond. The Company has developed a patented electrochemical refining technology that converts diverse feedstocks into high-purity battery-grade lithium hydroxide and carbonate. Mangrove’s platform enables economic lithium production and is designed to integrate seamlessly into upstream and downstream supply chains. Backed by Canada Growth Fund, Breakthrough Energy Ventures, BMW i Ventures, Mitsubishi Corporation, Asahi Kasei, Orion Industrial Ventures, Export Development Canada and BDC Capital, Mangrove Lithium is advancing lithium infrastructure to meet the global demand for secure, domestic battery production. Learn more at www.mangrovelithium.com.
Announcement authorised for release by Elevra’s Managing Director and Chief Executive Officer.
About Elevra Lithium
Elevra Lithium Limited is a North American lithium producer (ASX:ELV; NASDAQ:ELVR) with projects in Québec, Canada, United States, and a joint venture in Western Australia.
Elevra’s assets comprise North American Lithium (
For more information, please visit us at www.elevra.com
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2 See ASX announcement “Elevra Announces Transformational Financing Package to Accelerate Growth” announced 12 May 2026.
For more information please contact: Mangrove Lithium Carl McBeath Communications Manager carlmcbeath@mangrovelithium.com Elevra Lithium Andrew Barber Investor Relations PH: +617 3369 7058