The Government of Canada has taken a major step toward strengthening its clean energy future by supporting a new lithium refining facility developed by Mangrove Lithium in Delta, British Columbia. The project is part of a broader strategy to build a fully domestic battery supply chain and reduce reliance on foreign processing markets.
The newly opened facility is the first commercial electrochemical lithium refining plant in North America. Located in Delta, it is designed to produce battery-grade lithium that can support the manufacturing of approximately 25,000 electric vehicles (EVs) annually. This marks a significant expansion in Canada’s capacity to process one of the most critical minerals used in modern clean technologies.
Lithium plays a central role in powering EV batteries, helping them store more energy and deliver efficient performance. With global demand rising rapidly due to the shift toward electric mobility and renewable energy, countries are racing to secure reliable supply chains. Canada, which holds an estimated 6.5 million tonnes of lithium resources, is currently the world’s seventh-largest producer and is now focusing on refining more of this resource domestically.
To support the project, the government has conditionally approved up to $21.9 million in funding through its Critical Minerals Research Development and Demonstration program. This investment aims to close the gap between raw mineral extraction and the production of battery-ready materials — a key missing link in Canada’s clean energy ecosystem.
Officials say the facility will not only strengthen energy security but also create jobs and promote long-term economic growth. By developing its own end-to-end battery supply chain, Canada hopes to position itself as a global leader in clean technology and reduce dependence on highly concentrated international processing markets.
The project also reflects a broader push by the government to unlock the economic potential of critical minerals while supporting the transition to a low-carbon economy. As demand for EVs and grid storage continues to grow, initiatives like this are expected to play a crucial role in shaping the future of sustainable energy and manufacturing in Canada.
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