Hello hello,
For the second year in a row, nine Canadian startups made the Global Cleantech 100 list. Companies like Planetary, Carbon Upcycling, Moment Energy and Cyclic Materials are growing into leaders in their categories and putting Canada on the map. Whether nine is enough or not, there’s no doubt that great companies get built here.
One of those listees - Mangrove Lithium - just announced a $115M financing round led by the Canada Growth Fund. We’ll unpack what Mangrove’s scaling plans mean for Canada’s battery ambitions, and how they’re building a new blueprint for funding climate infrastructure.
Elsewhere in climate:
Maia Farms lands $3.75M for mushroom proteins
veritree teams up with Manulife on reforestation
Canada makes a deal with China to open up its EV market
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TECH
Mangrove Lithium raises $115M and taps into tax credits to scale lithium refining
Source: Mangrove Lithium
What happened: Mangrove Lithium announced a $118 million (US $85M) structured financing to commercialize its low-impact lithium refining platform.
The Canada Growth Fund will invest $90 million with the balance coming from existing investors. National Bank is also providing a $9 million loan backed by Clean ITC tax credits.
The details: Mangrove Lithium is commercializing an electrochemical lithium refining platform to produce battery-grade materials. The process has lower carbon-intensity, produces less waste, and costs less than conventional refining methods.
The funding enables Mangrove to commission its first-of-a-kind commercial plant in Delta, BC (with a 1,000 tonnes/year capacity), and to develop its first full-scale plant that’s expected to produce up to 20,000 tonnes/year - enough for more than 500,000 EVs.
Why it matters: The deal shows how the capital stack for climate is evolving. Structured finance can de-risk climate tech infrastructure, with CGF’s investment aimed at crowding in more private capital before the technology is fully proven at industrial scale.
The $9 million loan backed by a Clean Technology Manufacturing investment tax credit is the first of its kind, providing upfront capital against the value of future tax credits. This creates a replicable blueprint for future capital-intensive projects.
The big picture: Canadian mines produced 4,300 tonnes of lithium in 2024 compared to 41,000 tonnes produced by China. But refining is even more concentrated, with China owning 70% of refining capacity.
Reaching the planned 20,000 tonne per year output would position Mangrove - and Canada - as a leading player in the EV supply chain.
What’s next: This funding unlocks the next level of scale for Mangrove, moving closer to true industrial scale, and expanding the funding tools available for other industrial climate tech players.
Go deeper: We spoke with Mangrove CEO Saad Dara back in November about their scale up process, lessons learned on the way, and Canada’s battery supply chain ambitions.
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CLIMATE CAPITAL
🍄 Maia Farms (Vancouver, BC) secured $3.75 million in an oversubscribed seed round led by Active Impact Investments for its mushroom-based ingredients.
💰 Innovation Saskatchewan invested almost $2.2 million in nine tech projects including Teal (DC charging infrastructure) and B-Nature (industrial composting).
🏦 Financial services firm Canaccord Genuity acquired energy transition-focused investment bank Carbon Reduction Capital to build a new Energy Transformation group.
IN THE FIELD
🌴 veritree will power Manulife’s new global forest restoration initiative, implementing its Smart Forest nature restoration platform.
⛏ Canadian miner Northern Graphite announced a $200 million joint venture with Saudi investment group Al Obeikan to develop a battery anode materials plant in Saudi Arabia supplied by Northern Graphite.
⛏ Canada Nickel received fast-track permitting approval from Ontario for its Crawford Nickel Project in Northern Ontario.
💨 Arca partnered with Giga Metals to explore carbon removal potential at the Turnagain Nickel project in B.C. The site could remove up to 220 Mt of Co2 from the atmosphere.
🔌 Mercedes-Benz started rolling out it’s fast-charging network with three hubs in B.C.
DEEP DIVE
Recap: Climate Tech Funding in 2025
ICYMI: We published our annual recap of Canadian climate tech funding, tracking where capital’s flowing across stages, sectors and more. Three big themes I’m thinking about:
A barbell market: Growth equity dominated with 54% of capital flowing to just 9 deals, while Seed stages stayed active and diverse with deals across sectors.
The Series C+ gap: We tracked just 2 late-stage deals that closed in 2025. What happens when today's early stage companies need growth capital in 2-3 years?
What AI wave: AI and data centre energy demand lifted the US market to 27% growth, but we didn’t see a similar bump in the Canadian market. Is the wave passing by, or are Canadians quietly building?
Got a different take or want to chat about the data? Hit reply or email me at hello@climatetechcanada.
NEWS
📡 Signals & Currents
Return to China: Canada signed a trade deal with China to scale back tariffs on Chinese EVs and reciprocal tariffs on Canadian canola, lobster and more.
Under the deal, Canada will allow 49,000 EVs into the Canadian market at a 6.1% tariff (instead of 100%) with more vehicles allowed each year. In return, China will lower tariffs on canola (and drop others).
→ Why it matters: Canadians could get access to more affordable Chinese EVs, boosting adoption and competition in the Canadian market. It also sets the stage for joint-venture investments.
Hydrogen returns: The EU approved Germany’s $300M commitment to produce and import renewable hydrogen from Canada, and a matching $300M from Canada.
Work to send clean, Canadian hydrogen to Germany has been in the works for years
The $600M will be used to close the gap between production costs and what buyers are willing to pay
Green steel delays: Steelmaker ArcelorMittal Dofasco extended its coal phase-out timeline from 2028 to 2050, and will receive an additional $50M from the feds.
Dofasco plans to swap blast furnaces for direct reduced iron technology and electric arc furnaces
The steel sector is struggling under US tariffs and imports from other countries, and companies like Algoma are using the moment to switch to electric steelmaking
Power price hikes: Ontario Power Generation is seeking almost double the price for electricity produced by its nuclear power stations in 2027, adding about 2.4% to residential bills annually.
Utilities across the country have increased rates to meet rapidly growing demand through a mix of efficiency programs and new generating capacity
Electricity prices are becoming a top political issue in the US
Quick hits
Climate efforts took a step back in Canada last year as businesses focus on weathering tariffs
Nat Bullard’s annual presentation dropped (for real this time - I linked to a preview by accident last time!)
What each province wants from Carney’s major projects agenda
EV batteries last longer than we thought
The White House is pushing grid operators to add more capacity
The US takes another critical minerals stake
An M&A revival for clean energy could be on the horizon
COMMUNITY
🚀 Blue Action Canada: Blue Action Canada is a blue economy accelerator to connect high-potential, BC-based ocean ventures with industry experts, partners, and investor networks. Apply by Feb 15th.
💻 CarbonRun is hiring a Québec Project Development Lead to develop and deliver its carbon removal project portfolio in the province.
🗓 Carbon Removal Day: Join the carbon removal sector to determine what it takes to put Canada on a path to catalyzing a billion tonnes of carbon removal by 2050. March 5th, Ottawa.
➡ More: Job Board | Funding Opportunities | Events
