Elevra Lithium Signs Non-Binding Memorandum of Understanding for Spodumene Concentrate offtake with Mangrove Lithium

Rhea-AI Summary

Elevra Lithium (NASDAQ:ELVR) signed a non-binding Memorandum of Understanding with Mangrove Lithium to supply up to 144,000 tpa of spodumene concentrate from North American Lithium, ramping to that level by 2030 and representing ~46% of estimated sales volumes.

The proposed five-year supply would commence in 2028, is subject to Mangrove's final investment decision by June 2027, includes a floor and ceiling price to support NAL cashflow, and anticipates Mangrove converting feedstock into 20,000 tpa of battery-grade lithium. Test work on NAL spodumene is due Q3 CY26.

Positive

• Potential supply of 144,000 tpa spodumene concentrate by 2030
• Represents ~46% of estimated NAL sales volumes
• Five-year initial supply term beginning 2028 (subject to FID)
• Mangrove capacity to produce 20,000 tpa lithium hydroxide (equiv. 500,000 EVs)
• Pricing floor and ceiling to underpin NAL cashflow across cycles
• US$85m financing supporting Mangrove's conversion build-out

Negative

• Non-binding MoU; definitive agreement requires Mangrove FID by June 2027
• Supply ramp not at full 144,000 tpa until 2030, delaying full benefits
• Dependence on third-party Mangrove for conversion capacity and timeline
• Price limits (floor and ceiling) may cap upside from higher lithium prices

Key Figures

Spodumene supply: 144,000 tonnes per year Offtake term length: 5 years Share of sales: 46% +5 more

8 metrics

Spodumene supply 144,000 tonnes per year Potential annual spodumene concentrate offtake to Mangrove under MoU

Offtake term length 5 years Initial proposed supply period commencing in 2028

Share of sales 46% Proposed offtake as percentage of estimated NAL sales volumes by 2030

Lithium hydroxide capacity 20,000 tonnes per year Planned Mangrove facility battery-grade lithium output

EV equivalent 500,000 EVs Annual vehicle equivalent supported by 20,000 tpa lithium output

Pilot commercial plant 1,000 tonnes per annum Capacity of Mangrove’s commercial electrochemical refining plant

Financing round US$85 million Recent Mangrove funding led by Canada Growth Fund and others

Investment decision deadline June 2027 Latest date for Mangrove final investment decision for conversion facility

Market Reality Check

Price: $52.88 Vol: Volume 91,999 vs 20-day a...

normal vol

$52.88 Last Close

Volume Volume 91,999 vs 20-day average 100,779 (relative volume 0.91x), so price move came on typical activity. normal

Technical Price 52.88 is trading above the 200-day MA of 37.04 and 24.45% below the 52-week high of 69.9899.

Peers on Argus

ELVR gained 15.21%, while peers like WRN, NB, TMQ, LZM, and NAK were up a more m...

ELVR gained 15.21%, while peers like WRN, NB, TMQ, LZM, and NAK were up a more modest 1.5–6.03%. With no peers in the momentum scanner and smaller moves across the group, today’s action appears more company-specific than sector-driven.

Historical Context

3 past events · Latest: Jan 27 (Neutral)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Quarterly results	Neutral	-1.4%	Record NAL revenue, updated production, sales and unit cost guidance.
Jan 21	Reporting advisory	Neutral	+5.9%	Quarterly report timing and shift of presentation currency to USD.
Jan 12	Expansion announcement	Positive	+7.7%	Accelerated NAL expansion plan targeting higher output and lower unit costs.

Pattern Detected

Recent news has often seen ELVR respond positively to growth and expansion updates, while more routine reporting produced mixed or modest reactions, suggesting investors focus on long-term NAL economics.

Recent Company History

Over the last few months, Elevra has focused on scaling North American Lithium. On Jan 12, 2026, it announced an accelerated NAL expansion targeting 315 ktpa, which coincided with a 7.66% gain. A Jan 21 advisory about reporting timelines and currency changes saw a 5.9% rise. The Jan 27 quarterly activities report, featuring US$66m revenue and updated guidance, was followed by a modest -1.43% move, indicating more nuanced reactions to operational detail.

Market Pulse Summary

This announcement outlines a non-binding MoU that could channel up to 144,000 tpa of NAL spodumene—a...

Analysis

This announcement outlines a non-binding MoU that could channel up to 144,000 tpa of NAL spodumene—around 46% of estimated sales—into a Canadian converter from 2028, under a floor-and-ceiling pricing framework. It follows recent updates on NAL expansion and quarterly performance. Key watchpoints include Mangrove’s final investment decision by June 2027, ramp-up to 2030 volumes, and how this offtake may interact with existing contracts and cost targets.

Key Terms

spodumene concentrate, critical minerals supply chain, offtake, pilot plant

4 terms

spodumene concentrate technical

"to supply Mangrove Lithium ("Mangrove") with spodumene concentrate produced at"

A processed rock product that concentrates spodumene, a mineral rich in lithium, which is then refined into lithium chemicals used to make rechargeable batteries. Think of it as the crude oil equivalent for lithium batteries: an early-stage raw material whose availability and price influence the cost and supply of battery-grade lithium. Investors watch spodumene concentrate as an indicator of future battery material supply, production costs, and the health of electric-vehicle and energy-storage supply chains.

critical minerals supply chain regulatory

"supporting the Canadian Government's priority to build a secure critical minerals supply chain."

The critical minerals supply chain is the network of mines, processors, transport, manufacturers and recyclers that produce and deliver minerals considered essential for technologies like batteries, electronics and clean energy. Investors care because bottlenecks, geopolitical shifts, environmental rules or trade disruptions anywhere along that chain can raise costs, delay projects or change which companies and regions profit—much like a broken delivery route can halt a restaurant’s ability to serve popular dishes.

offtake financial

"for spodumene concentrate offtake with Mangrove Lithium"

An offtake is a contract where a buyer commits in advance to purchase a company’s future output—such as raw materials, energy or finished goods—often at agreed volumes and prices. For investors, an offtake provides predictable revenue and lowers the risk that production will go unsold, similar to a long-term subscription or pre-order that helps a factory or mine secure funding and plan operations with greater confidence.

pilot plant technical

"Mangrove have demonstrated the viability of their lithium conversion process in a pilot plant"

A pilot plant is a small-scale version of a production facility built to test, refine and demonstrate a manufacturing process before investing in full commercial production. For investors, it acts like a prototype or test kitchen: it shows whether a process works at realistic scale, reveals likely costs and bottlenecks, and reduces technical and financial risk associated with scaling up to mass production.

AI-generated analysis. Not financial advice.

BRISBANE, Australia, Feb. 09, 2026 (GLOBE NEWSWIRE) -- North American lithium producer Elevra Lithium Limited (“Elevra”) (ASX:ELV; NASDAQ:ELVR) is pleased to announce that it has signed a non-binding Memorandum of Understanding ("MoU") to supply Mangrove Lithium ("Mangrove") with spodumene concentrate produced at North American Lithium ("NAL"). A binding definitive agreement between Elevra and Mangrove may be signed at a future date, subject to Mangrove making a final investment decision prior to June 2027 for construction of a lithium conversion facility and agreement on the final terms of the agreement.

Under the terms of the non-binding MoU, Elevra and Mangrove intend to negotiate a definitive agreement under which Elevra could supply up to 144,000 tonnes per year of spodumene concentrate to Mangrove at market related prices, subject to a floor and ceiling price, which would support positive cashflow generation for NAL at any point in the pricing cycle.

The proposed supply would be for an initial period of five (5) years, commencing in 2028 and ramping up to 144,000 tonnes per annum by 2030, which would represent approximately 46% of estimated sales volumes. Mangrove intends to process the spodumene concentrate in Eastern Canada into battery-grade lithium hydroxide to support the establishment of a resilient, domestic battery supply chain in Canada. Mangrove’s facility would have the capacity to produce 20,000 tonnes of battery-grade lithium a year, which is the equivalent to 500,000 EVs.

Mangrove have demonstrated the viability of their lithium conversion process in a pilot plant located in Delta, Canada. Test work is being completed on NAL spodumene and results are expected in Q3 CY26. Alongside the pilot plant, Mangrove has constructed and commissioned North America’s first commercial electrochemical lithium refining plant, with a 1,000 tonnes per annum capacity, which will be used for customer product qualification programs.

Mangrove recently announced an US$85 million financing round led by Canada Growth Fund, with support from returning investors Breakthrough Energy, and BMW i Ventures. Other key supporters include Mitsubishi Corporation, Orion Industrial Ventures, Export Development Canada, InBC, Asahi Kasei, and BDC Capital. Mangrove’s proprietary refining platform eliminates solid waste byproducts and leverages low-cost, low-carbon electricity, delivering both environmental benefits and a structurally more cost-competitive alternative to conventional lithium refining.

Elevra’s Chief Executive Officer and Managing Director, Lucas Dow, said: “Signing this non-binding Memorandum of Understanding with Mangrove marks an important step in strengthening our commercial position while supporting the Canadian Government's priority to build a secure critical minerals supply chain. Mangrove have achieved impressive results from their Pilot Plant and continue to refine their process efficiency.

"By supplying North American Lithium's production to a local partner, we expect to improve our cost efficiency and reinforce the competitiveness of our operations.”

Mangrove Chief Commercial and Strategy Officer, Annie Liu, said: “Partnering with Elevra to source Canadian spodumene concentrate is a natural strategic fit for Mangrove. Today, most lithium refining happens overseas, resulting in the loss of downstream value from Canada’s raw resources. By locating conversion close to the feedstock, we enhance supply chain security, support the creation of high-value domestic jobs, and advance Canada’s Critical Minerals Strategy.

"This collaboration supports the development of a resilient, end-to-end lithium supply chain in Canada, reducing reliance on overseas processing and anchoring greater economic and strategic value domestically. In addition, Mangrove’s electrochemical refining process leverages Québec’s low-cost, low-carbon hydroelectric power, delivering a structurally cost-competitive solution while materially reducing the carbon footprint of lithium conversion.”

Strategic Benefits for Elevra

This non-binding MoU is an important commercial milestone that aligns Elevra with a potential local downstream partner - which could improve the economics of NAL. Key benefits are anticipated to include:

• Reduced freight and logistics costs by supplying spodumene concentrate to a local converter, creating one of the shortest mine-to-chemicals supply chains in the industry;
• A pricing framework which includes a floor price (and associated ceiling price) that underpins cashflow generation across market cycles while maintaining considerable leverage to lithium prices; and
• A potential long-term offtake customer for increased annual output from the NAL Brownfield Expansion.

Strengthening Canada and Québec's Battery Ecosystem

Collaboration between Elevra and Mangrove directly supports the Government of Québec and Canada's priorities to accelerate the production of domestic battery materials and create end-to-end supply chains. Converting Elevra's spodumene concentrate in Québec would minimise the need for long-distance transport, is likely to reduce emissions and would anchor more value-added processing within Canada.

Partnership with a Canadian Innovator

Mangrove is a Canadian company, backed by a strong group of global strategic investors, creating a modular, scalable, electrochemical refining platform that converts a wide variety of feedstocks directly into battery-grade lithium hydroxide, eliminating complex and costly steps from conventional lithium processing technologies. The modular platform allows for lithium refining operations to be established near the point of feedstock extraction or battery manufacturing.

For more information about Mangrove, please visit their website at: www.mangrovelithium.com

Announcement authorised for release by Elevra’s Board of Directors.

About Elevra Lithium

Elevra Lithium Limited is a North American lithium producer (ASX:ELV; NASDAQ:ELVR) with projects in Québec, Canada, United States, Ghana and Western Australia.

In Québec, Elevra’s assets comprise North American Lithium (100%) and a 60% stake in the Moblan Lithium Project in Northern Québec. In the United States, Elevra has the Carolina Lithium project (100%) and in Ghana the Ewoyaa Lithium project (22.5%) in joint venture with Atlantic Lithium.

In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.

For more information, please visit us at www.elevra.com

For more information, please contact:
Andrew Barber

Investor Relations

PH: +617 3369 7058

FAQ

What does the Elevra (ELVR) MoU with Mangrove Lithium commit to for supply volumes and timing?

It commits to negotiating supply of up to 144,000 tonnes per year of spodumene concentrate, ramping to that level by 2030. According to Elevra, the proposed supply would start in 2028 for an initial five-year term, subject to a definitive agreement.

Is the Elevra (ELVR) agreement with Mangrove a binding offtake contract?

No, it is a non-binding MoU that outlines intent to negotiate a definitive agreement. According to Elevra, a binding contract depends on Mangrove making a final investment decision by June 2027 and agreeing final terms.

How much battery-grade lithium could Mangrove produce from Elevra's spodumene under the plan announced by ELVR?

Mangrove's facility would have capacity to produce 20,000 tonnes of battery-grade lithium per year, equivalent to about 500,000 EVs. According to Elevra, Mangrove aims to convert NAL feedstock in Eastern Canada to support domestic supply chains.

What pricing structure did Elevra (ELVR) describe for spodumene supplied to Mangrove?

Elevra described a market-related pricing framework with a floor and ceiling price to support NAL cashflow. According to Elevra, this structure is intended to underpin positive cashflow across different lithium price cycles.

When will test results on North American Lithium spodumene be available following the ELVR announcement?

Test work on NAL spodumene is expected to be completed with results due in Q3 CY26. According to Elevra, these results will inform feedstock qualification for Mangrove's conversion process and potential final agreement terms.

How does the ELVR–Mangrove MoU affect Elevra's logistics and emissions profile?

Supplying a local converter in Québec should shorten mine-to-chemicals transport and likely reduce emissions. According to Elevra, converting feedstock locally also aims to lower freight costs and anchor more downstream processing in Canada.