Lithium Lifeline: Can Mangrove Break China's Grip?

A new US lithium plant by Mangrove could cut China ties, boost EV battery supply, and reshape America's clean energy future.

24 Jul 2025

North America's electric vehicle ambitions may soon get a critical boost. Mangrove Lithium has announced plans for a large US refining plant that could change how the region sources the key material powering EV batteries.

The facility is expected to produce 20,000 tonnes of battery-grade lithium hydroxide each year, enough to power more than half a million electric cars. For the US, which currently relies heavily on overseas processing, the project represents a step toward greater energy independence.

Right now, China controls over 70 percent of global lithium refining, leaving US automakers exposed to shifting geopolitics. Mangrove's venture is part of a wider push to loosen that grip and build a domestic supply chain.

Central to the effort is Mangrove's electrochemical refining technology, which promises lower waste and costs. The company plans to scale production twentyfold from its Canadian pilot plant and already has customer agreements lined up.

Federal policy is adding urgency. The Inflation Reduction Act ties consumer tax credits to domestic battery materials, meaning that lithium refined abroad no longer qualifies. "It is not enough to mine lithium, we have to refine it here," said Mangrove's CEO, echoing a growing industry mantra.

Challenges remain. Lithium prices have been volatile, giving some investors pause. Yet experts argue the fundamentals are steady: EV adoption is climbing fast, and supply chains must adapt. By locking in sales through long-term contracts, Mangrove hopes to ride out short-term swings.

If the project succeeds, it could be a turning point for North America's EV sector, showing that the US can not only keep pace with global demand but also set the standard for cleaner, more secure energy manufacturing.