Canada opens first commercial lithium refinery

The federal government opened North America's first commercial electrochemical lithium refining facility Tuesday, marking a significant step toward domestic battery manufacturing independence. Veterans Affairs Minister Jill McKnight joined Mangrove Lithium executives for the ribbon cutting at the new Delta, 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. Mangrove Lithium's new facility positions Canada as a hub for refining battery–grade materials right here in Delta, reinforcing our economic security and supporting Canadian innovation," Minister Jill McKnight said. "Canada has what the world wants, and we are making strides to use our mineral wealth as a basis to diversify our clean energy opportunities and create stable, long-term careers in British Columbia and beyond."

The facility will produce enough battery-grade lithium annually to power approximately 25,000 electric vehicles. This represents a major expansion in Canada's domestic processing capacity as the country seeks to capture more value from its mineral resources rather than exporting raw materials.

Canada currently ranks as the world's seventh-largest lithium producer with total resources estimated at 6.5 million tonnes. The government views domestic refining as essential for reducing dependence on foreign processing markets while strengthening supply chain security.

Supply chain security focus

Lithium plays a crucial role in electric vehicle batteries, enabling their charge and discharge capabilities while providing the high energy density that allows more power storage in smaller spaces. Current demand shows 87 percent of lithium consumption connects to batteries, electric vehicles and grid storage applications.

Natural Resources Canada 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 at the Prospectors and Developers Association of Canada's 2026 Convention in March.

The Delta facility addresses what industry experts call the "missing middle" between Canada's abundant lithium resources and the capacity to convert raw materials into battery-grade products. This gap has forced Canadian companies to rely on foreign processing, particularly from markets with heavy geographic concentration.

Federal investment supports expansion

"Building a strong, secure Canadian battery supply chain requires more than access to critical minerals: it requires the ability to refine and manufacture those materials here at home. Today, there is a critical gap between Canada's lithium resources and the capacity to convert them into battery-grade materials," Saad Dara, CEO of Mangrove Lithium, said.

The government designated lithium as a critical mineral due to its importance in low-emissions energy transitions. Canada operates two active lithium projects in Manitoba and Quebec with several advanced projects under development. The March funding announcement included over $165.2 million for 22 Canadian projects designed to unlock more than $434 million in project capital across eight provinces.