DELTA, BC, Jan. 15, 2026 /CNW/ - Canada Growth Fund Inc. ("CGF") and Mangrove Water Technologies Ltd. ("Mangrove Lithium" or the "Company"), a Canadian cleantech company, announced today an up to US$85 million structured financing to support the commercialization and deployment of Mangrove Lithium's lithium refining technology in Canada and abroad. This transaction (the "CGF Transaction") closed concurrently with a C$9 million Clean Technology Manufacturing ("CTM") Investment Tax Credit ("ITC") backed loan (the "CTM ITC-backed loan"), underwritten by National Bank of Canada (the "Bank" or the "NBC"). In addition to CGF, existing investors also participated in the CGF Transaction, including early backers Breakthrough Energy Ventures and BMW i Ventures.
CGF has a mandate to invest in Canadian cleantech companies that are advancing and commercializing innovative technology solutions. By structuring a transaction during Mangrove Lithium's technological and commercial de-risking phase, CGF is paving the way to crowd-in additional private capital into the Company. CGF's investment also strengthens Canada's resilience by supporting the future build out of an integrated mining-to-refining lithium supply chain leveraging Canadian home-grown intellectual property ("IP"). CGF's investment supports the Company's commercial development while maintaining its headquarters in Canada, protecting Canadian IP, and creating high-quality, skilled jobs.
"CGF was created to help Canadian companies and projects scale, and to strengthen Canada's low-carbon supply chains. This transaction will enable Mangrove Lithium to advance its commercial development in a sector that is critical for Canada," said Yannick Beaudoin, President and Chief Executive Officer of Canada Growth Fund Investment Management ("CGFIM"). "CGF is pleased to partner with Mangrove Lithium and to reinforce our important role to help companies create the right conditions to attract private capital".
"Mangrove Lithium is at a pivotal moment in its growth, and CGF's investment accelerates our expansion," said Saad Dara, CEO & Co-Founder of Mangrove Lithium. "We are proud of the progress to establish Mangrove Lithium as the leader in next-generation lithium processing and refining technologies, enabling a Canadian solution to strengthen the lithium supply chain, enhance energy security, and support the transition to a net-zero future. We look forward to working with CGF and our existing partners to fully commercialize our unique and proprietary technology through widescale deployment".
Mangrove Lithium is pioneering a feedstock-flexible, electrochemical lithium refining platform that produces battery-grade lithium hydroxide or lithium carbonate. The Company's process is expected to be more economical vis-à-vis conventional refining methods, while also offering significant environmental benefits, including lower carbon intensity and reduced waste.
The Company recently completed Phase 1 construction for its 1,000 tonne per annum first-of-a-kind commercial lithium refining facility in Delta, BC (the "Single Stack Plant"). The Single Stack Plant will produce enough battery-grade materials to power approximately 25,000 electric vehicles annually. The CTM ITC is a federal incentive designed to accelerate investment in clean technology manufacturing by providing refundable tax credits for qualifying projects, such as the Single Stack Plant. By leveraging this credit through an ITC bridge loan, Mangrove Lithium has unlocked a new financing mechanism that provides upfront capital against future tax credits, creating a blueprint for future large-scale industrial projects financings in Canada. This approach demonstrates a scalable model for attracting private capital and accelerating deployment of clean energy infrastructure nationwide. The proceeds from this transaction will support operations at Mangrove's first Single Stack Plant while also advancing development of its next project, expected to power more than 500,000 electric vehicles annually.
"We are excited to have provided a C$9 million credit facility, backed by the new CTM ITC-program, in support of our long-time client Mangrove Lithium", said Jeffrey Lightburn, Director, Technology & Innovation at National Bank of Canada. "This demonstrates the viability of an important financial tool for Mangrove Lithium's future project financings and shows our commitment to their growth through the use of such an innovative, industry-leading mechanism".
In addition to Phase 1 construction of the Single Stack Plant in 2025, Mangrove Lithium has been advancing work towards its first full-scale plant (the "FSP"), including completing early engineering and commencing site selection in Canada. The FSP is expected to have a capacity of 20,000 tonnes per year and will play a critical role in strengthening Western supply chain resiliency. By bringing large-scale lithium conversion and refining onshore, the FSP reduces reliance on overseas processing, mitigates exposure to geopolitical risk and price volatility, and ensures that more of the value created from critical minerals remains within North America.
Transaction Highlights
CGF is a $15 billion arm's-length investment vehicle designed to attract private capital to build Canada's clean economy. It uses investment instruments that absorb certain risks to catalyze private investment in low-carbon projects, technologies, businesses, and supply chains. Visit www.cgf-fcc.ca for more information.
For CGF's Media relations, contact [email protected].
In Budget 2023, the Government of Canada appointed PSP Investments, through a wholly owned subsidiary, to act as the asset manager for CGF. CGFIM serves as the independent and exclusive asset manager for CGF.
Mangrove Lithium is a lithium refining technology company headquartered in Delta, British Columbia, Canada, with a mission to build scalable, battery-grade lithium production across North America and beyond. The Company has developed a patented electrochemical refining technology that converts diverse lithium feedstocks into high-purity battery-grade lithium hydroxide and carbonate. Mangrove Lithium's platform enables economic lithium production and is designed to integrate seamlessly into upstream and downstream supply chains. Backed by CGF, Breakthrough Energy Ventures, BMW i Ventures, Mitsubishi Corporation, Asahi Kasei, Orion Industrial Ventures, Export Development Canada and BDC Capital, Mangrove Lithium is advancing lithium infrastructure to meet the global demand for secure, domestic battery production. Learn more at www.mangrovelithium.com.
With $577 billion in assets as at October 31, 2025, National Bank of Canada is one of Canada's six systemically important banks. The Bank has more than 35,000 employees in knowledge-intensive positions and operates three business segments in Canada: Personal and Commercial Banking, Wealth Management and Capital Markets. A fourth segment, U.S. Specialty Finance and International, complements the growth of its domestic operations. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media.
Public Sector Pension Investment Board ("PSP Investments") has established a policy to address the risk of any real, potential or perceived conflicts of interest in the context of the services provided by CGFIM to CGF, requiring PSP Investments and CGF to disclose where they have overlapping investments.
At the time of the approval of the Transaction, PSP Investments held an ownership stake in Bayerische Motoren Werke AG, the ultimate parent company of BMW i Ventures, a minority shareholder of Mangrove, of less than 0.1% through various portfolios in the context of its ordinary course public market activities. In each instance, PSP Investments' investments carry no governance or decision-making ability.
The foregoing is being disclosed in accordance with PSP Investments' Conflict of Interest Policy.
SOURCE Canada Growth Fund Inc.
For media relations, please contact [email protected]
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