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Canadian lithium refining startup Mangrove Lithium has closed $85 million in financing commitments to ramp up its tech, CEO Saad Dara tells Axios Pro. 

The big picture: Governments are supporting next-gen lithium processing outside of China, which dominates the sector. 

Zoom in: Mangrove raised $65 million of the funds from Canada Growth Fund, a $15 billion public sector pension fund developed by the Canadian government to support tech in the country.

Existing investors participated in the financing, including Breakthrough Energy Ventures and BMW i Ventures.

The financing will be used to develop Mangrove's processing facility under construction in Delta, British Columbia, and to plan a larger facility in eastern Canada. 

The company previously raised $35 million from investors including Mitsubishi Corporation, Asahi Kasei Corporation, InBC, Orion Industrial Ventures, Export Development Canada, Breakthrough Energy Ventures, BMW i Ventures, and BDC Capital.

How it works: Mangrove has developed an electro-chemical process that refines lithium into battery-grade materials more efficiently, with less waste and with less cost compared to traditional processes.

"Instead of using chemicals, we use electricity," said Dara. 

Mangrove works with mining companies and battery makers, mostly to provide materials for their North American plants. 

Zoom out: While lithium deposits are found all over the world, China dominates processing lithium into usable materials for batteries. 

The U.S. and Canada have been investing in developing domestic lithium processing supply chains, and private investors have followed suit.

Both the Biden administration's Inflation Reduction Act and the Trump administration's One Big, Beautiful Bill provide support for domestic critical minerals.

Yes, but: Mangrove still needs to finish commissioning and then start up production of its demo plant in Delta, which it says will be able to make 1,000 tons per year of lithium hydroxide.

The second plant, which will prove out the production at scale, is intended to produce 20,000 tons per year.

What's next: Mangrove will need to raise additional capital to construct the second, larger plant. 

Exclusive: Mangrove Lithium raises $85M to scale refining tech

Governments are supporting lithium processing outside of China.

Person in white lab coat holding a tray, standing in an industrial facility with large gas cylinders, pipes, gauges, and metal equipment racks under bright overhead lighting.

A pilot processing plant near Vancouver, British Columbia, built by lithium startup Mangrove Lithium. Photo: Courtesy of Mangrove Lithium.

Canadian lithium refining startup Mangrove Lithium has closed $85 million in financing commitments to ramp up its tech, CEO Saad Dara tells Axios Pro. The big picture: Governments are supporting next-gen lithium processing outside of China, which dominates the sector.

Exclusive: Mangrove Lithium raises $85M to scale refining tech

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