Department of Finance Canada welcomed a Canada Growth Fund investment of up to US$65 million, about C$89.6 million, in Mangrove Water Technologies Inc., which operates as Mangrove Lithium.
The investment is part of a US$85 million structured financing package that also includes BMW i Ventures and Breakthrough Energy Ventures.
Finance Canada said the financing would support Mangrove Lithium's first commercial facility in Delta, British Columbia, and advance development of a larger future project.
The Delta facility produces 1,000 tonnes of battery-grade lithium hydroxide per year, enough for about 25,000 electric vehicles annually.
The company also plans a larger commercial lithium conversion facility in Eastern Canada. Finance Canada said that project is expected to produce 20,000 tonnes of lithium hydroxide per year, enough battery-grade lithium for about 500,000 electric vehicles annually.
Canada Growth Fund is a $15 billion arm's-length public investment vehicle launched by the federal government to attract private capital into Canadian projects and businesses.
The announcement does not create a household tax credit. It shows how a federal investment vehicle is being used to support battery supply chains, clean-technology capacity, and business investment in Canada.