Vancouver-based startup Mangrove Lithium is developing an electrochemical refining process designed to convert raw lithium feedstocks into battery-grade lithium hydroxide. This technology aims to address a critical upstream bottleneck in the electric vehicle (EV) supply chain, where traditional thermochemical refining methods remain energy-intensive, reliant on heavy chemical reagents, and prone to significant waste generation.
The global battery supply chain currently faces significant pressure, with an estimated 60 to 70 percent of the world’s lithium refinement capacity concentrated in China, according to industry analysis. Geopolitical tensions and export restrictions in recent years have highlighted the vulnerability of this centralized model. By shifting toward an electrochemical approach that utilizes electricity, water, and oxygen, Mangrove Lithium seeks to reduce the environmental footprint of battery material production while diversifying the geographic map of the supply chain.
The company is currently preparing for the next phase of its development, with a demonstration plant in British Columbia scheduled to begin production in the second half of 2026. This facility is expected to produce 1,000 tonnes of lithium hydroxide annually, serving as a proof-of-concept for scaling the proprietary technology.
How Electrochemical Refining Replaces Traditional Methods
Conventional lithium refinement typically involves the roasting of spodumene at high temperatures followed by acid leaching to produce lithium sulfate. Ryan Day, director of operations at Mangrove Lithium, characterizes this as a “thermochemical reaction that uses heavy amounts of reagent chemicals, and generates a sodium sulfate waste stream.” This process is not only resource-heavy but often requires shipping raw materials across long distances for processing, which increases the total carbon intensity of the final battery product.
Mangrove’s alternative process functions within an electrochemical cell featuring three compartments separated by ion exchange membranes—semipermeable barriers that selectively allow ion movement. As brine flows through the central compartment, an electric field forces the lithium ions to move across a membrane toward the cathode. According to Day, the system reacts oxygen and water at the cathode to create hydroxide ions, which combine with the lithium to form battery-grade lithium hydroxide.
Simultaneously, sulfate ions move toward the anode where water is split to produce oxygen gas and protons. These protons combine with the sulfate to create sulfuric acid, which can be recovered and cycled back upstream to leach more brine from raw feed materials. This closed-loop design aims to minimize waste, relying primarily on electricity, water, and oxygen as inputs.
Engineering Challenges in Scaling Electrochemical Processes
While the electrochemical approach offers a cleaner alternative to traditional refining, scaling the technology presents technical hurdles. Feifei Shi, an assistant professor of energy engineering at Penn State who researches electrochemical refinement, notes that maintaining the integrity of ion exchange membranes remains one of the most significant challenges for industrial-scale deployment.
Shi observes that while electrochemical methods can more easily activate necessary reactions compared to traditional thermal processes, they face inherent limitations when scaled to meet the massive demands of the global EV market. Mangrove Lithium has sought to address these challenges through the development of a proprietary oxygen-based cathode. This electrode is designed to facilitate the reaction between gas and liquid phases while preventing the system from flooding—a scenario that would otherwise lead to the production of hydrogen gas rather than the desired lithium hydroxide.
The company claims its electrode design favors the oxygen-reduction reaction for over 99.5 percent of total cathode activity. This precision is intended to reduce the overall voltage required for the process, as oxygen reduction typically demands less energy than water reduction. By balancing the flow of water and oxygen at the catalyst sites, the company aims to maintain efficiency at higher production volumes.
Broader Applications for Battery Material Supply
The demand for ultrapure battery minerals extends beyond lithium to include nickel, cobalt, graphite, and manganese. Current production methods for nickel and cobalt sulfates often involve multistep precipitation and solvent-extraction processes, which generate substantial waste and require significant reagent inputs. Mangrove Lithium’s electrochemical architecture is not limited to lithium and could potentially be adapted to purify other alkali-metal salts used in battery manufacturing.
As utilities and automakers compete for limited supplies of these critical minerals, refining capacity is increasingly viewed as a potential choke point for the global energy transition. If the company successfully scales its British Columbia demonstration plant, the technology could provide a blueprint for more localized, sustainable refining operations. This would represent a shift in the current supply chain geography, potentially reducing the reliance on long-distance shipping and foreign refining hubs.
The company has not released updated timelines for commercial-scale expansion beyond the 2026 demonstration plant. Industry observers and stakeholders continue to monitor the facility’s performance as a key indicator of whether electrochemical refining can compete with the cost and scale of established thermochemical methods. Readers interested in the progress of these supply chain innovations can track company milestones through official press releases and updates from the British Columbia industrial development offices.