The federal government opened the first commercial electrochemical lithium refining facility in North America on Tuesday, marking a significant step toward independent battery manufacturing domestically. Veterans Affairs Minister Jill McKnight joined Mangrove Lithium executives at cutting the ribbon at Delta’s new British Columbia plant on Thursday.
“Across the country, we are seeing the results of Canada’s commitment to building a world-class critical minerals ecosystem,” said Minister Jill McKnight. “Mangrove Lithium’s new facility positions Canada as a hub for refining battery materials right here in the Delta, strengthening our economic security and supporting Canadian innovation.” “Canada has what the world wants, and we are making strides to use our mineral wealth as a foundation to diversify our clean energy opportunities and create stable, long-term jobs in British Columbia and beyond.”
The facility will produce enough battery-grade lithium annually to power approximately 25,000 electric cars. This represents a significant expansion of Canada’s domestic processing capacity as the country seeks to extract greater value from its mineral resources rather than export raw materials.
Canada currently ranks as the world’s seventh largest lithium producer with a total resource estimate of 6.5 million tonnes. The government believes that domestic refining is essential to reduce dependence on foreign processing markets while enhancing supply chain security.
Focus on supply chain security
Lithium plays a crucial role in electric vehicle batteries, enabling charging and discharging capabilities while providing high energy density that allows more energy to be stored in smaller spaces. Current demand shows that 87 percent of lithium consumption is associated with batteries, electric vehicles, and grid storage applications.
Natural Resources Canada has provided conditional approval for up to $21.9 million in funding through the Critical Minerals Research Development and Demonstration Program. Energy Minister Tim Hodgson announced the investment in the Canadian Prospectors and Developers Association’s 2026 agreement in March.
The Delta facility addresses what industry experts call “the missing middle” between Canada’s abundant lithium resources and the ability to turn raw materials into battery-grade products. This gap has forced Canadian companies to rely on foreign processing, especially from markets with significant geographic concentration.
Federal investment supports expansion
“Building a robust and secure Canadian battery supply chain requires more than just access to critical minerals: it requires the ability to optimize and manufacture those materials right here at home,” said Saad Dara, CEO of Mangrove Lithium. “Today, there is a critical gap between Canada’s lithium resources and the ability to turn them into viable battery materials.”
The government has classified lithium as a critical mineral due to its importance in low-emission energy transitions. Canada operates two active lithium projects in Manitoba and Quebec with several advanced projects in development. The March funding announcement included more than $165.2 million for 22 Canadian projects designed to unlock more than $434 million in project capital across eight provinces.
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