Canadian Startup Raises $85M for Cleaner Lithium Tech

A Vancouver startup is proving that the future of battery materials doesn't have to depend on old, wasteful methods or foreign supply chains.

Mangrove Lithium just closed $85 million in financing to scale up its innovative lithium processing technology in British Columbia. The company replaces traditional chemical-heavy refining with an electrochemical process that's cleaner, cheaper, and more efficient.

"Instead of using chemicals, we use electricity," CEO Saad Dara explained. That simple switch makes a huge difference for the environment and production costs.

The funding came largely from Canada Growth Fund, a government-backed pension fund created specifically to support promising tech companies. Previous backers like Breakthrough Energy Ventures and BMW i Ventures also joined the round, showing strong confidence from both public and private sectors.

The money will help finish Mangrove's first processing facility in Delta, British Columbia, and plan a much larger plant in eastern Canada. The Delta plant will produce 1,000 tons of battery-grade lithium hydroxide annually, while the second facility aims for 20,000 tons per year.

Mangrove partners with mining companies and battery manufacturers who need materials for their North American plants. This matters because while lithium deposits exist worldwide, China currently dominates the processing side, controlling how raw minerals become usable battery materials.

Both the U.S. and Canada have been investing heavily in domestic lithium supply chains. The Biden administration's Inflation Reduction Act and Trump's recent infrastructure bill both include support for critical mineral processing, recognizing that batteries power everything from electric vehicles to renewable energy storage.

The Ripple Effect

Building North American lithium processing capacity creates more than just business opportunities. It strengthens energy security, reduces shipping emissions, and brings manufacturing jobs to communities like Delta and future plant locations in eastern Canada.

The technology itself could transform the industry standard. If Mangrove proves its electrochemical process works at scale, other companies might adopt similar approaches, making the entire sector cleaner and more sustainable.

The startup still faces challenges ahead. The Delta demo plant needs to finish commissioning and prove it can reliably produce quality materials. Then comes the bigger test of scaling up production twentyfold at the second facility, which will require raising additional capital.

But the strong investor interest and government backing suggest confidence in both the technology and the team. Mangrove has already attracted support from major players like Mitsubishi Corporation and Asahi Kasei Corporation alongside venture firms and export development agencies.

For communities worried about economic transitions to clean energy, projects like this show how new technologies create opportunities rather than just disrupting old industries.

A cleaner way to power tomorrow's batteries is moving from lab to factory floor in Canada.