Ottawa is investing up to US$65 million in Mangrove Lithium, a B.C.-based lithium processing company, as part of its strategy to strengthen Canada's critical minerals sector and counter China's dominance. This investment, facilitated by the Canada Growth Fund (CGF), a $15 billion public investment vehicle, aims to enhance domestic supply chains for low-carbon energy materials, such as electric car batteries. Mangrove Lithium, founded by Saad Dara, is scaling up its lithium processing plant in Delta, B.C., near Vancouver. The current facility can process enough lithium to power 25,000 electric cars, but the company's long-term goal is to build a larger plant in Ontario or Quebec, capable of producing 20,000 tonnes of battery-grade lithium annually, enough to power 500,000 EVs. This funding will support operations and accelerate the commercialization of the larger plant. The company's electrochemical refining process, which uses electrical current instead of harsh chemicals, is less environmentally invasive than traditional methods. Mangrove Lithium has raised over US$150 million in total funding, including support from Breakthrough Energy Ventures and BMW i Ventures. Ottawa's recent budget also introduced a $2 billion critical minerals sovereign fund to finance the sector. The Canadian government is actively investing in critical minerals companies through various funding arms, including CGF, Export Development Canada, and the Canada Infrastructure Bank. These investments include loans, equity stakes, and price floor agreements with mining companies. The Mining Association of Canada's president, Pierre Gratton, emphasizes that governments are becoming shareholders in the mining sector for economic, energy, and national security reasons. He highlights Quebec's early investment in the lithium sector and the federal government's subsequent investments in critical minerals projects as a necessary response to unfair market practices by global players like China. Gratton argues that without federal support, small mining projects would struggle to secure funding, making them vulnerable to China's market dominance. The article concludes by noting that China currently dominates the global lithium supply chain, with Canada playing a minor role. However, several projects are underway to challenge China's dominance.
