Electra Battery Materials has been awarded $20 million in support from the US Department of Defense to advance the development of a cobalt sulfate refinery in Northern Ontario.
The funds will support the construction and commissioning of North America’s only cobalt sulfate refinery, capable of producing battery grade materials for lithium-ion batteries. Today, more than 80% of battery grade cobalt is produced in China.
“Electra is committed to strengthening the resiliency of the North American battery supply chain,” said Electra CEO, Trent Mell. “We are grateful to the U.S. Department of Defense for its support. On issues of national security, there are no borders between Canada and the United States. We are proud to partner with the U.S. Government to build a strong North American supply chain for critical minerals.”
The $250 million refinery project is located north of Toronto, in Temiskaming Shores, and is projected to have the lowest carbon footprint in the world. The Company is expanding an existing plant, with permits in hand, construction well underway and most long lead custom equipment at site.
Once fully commissioned, the facility can produce 6,500 tonnes of cobalt per year, which would support the production of over 1 million EVs annually. LG Energy Solution will purchase up to 80% of capacity over the first five years and several buyers are now competing for the remaining production. The cobalt feed material will be ethically-sourced from Glencore and Eurasian Resources Group mines in the DRC – material that would otherwise be shipped to China.
In addition to cobalt refining, Electra plans to produce other battery materials that will strengthen the resiliency of the North American supply chain. In 2023, the Company operated a plant-scale black mass demonstration plant at its refinery complex, recovering lithium, nickel, cobalt and other critical minerals from batteries. The company is also contemplating a second cobalt sulfate facility in Bécancour, Quebec and a strategically located North American nickel sulfate plant.
This funding, granted under the Defense Production Act, is aimed at boosting domestic production capabilities. Electra’s refinery is the sole facility of its kind in North America, amidst a global market where over 80% of battery-grade cobalt is sourced from China.
“We appreciate the U.S. Department of Defense’s backing. When it comes to national security, borders between Canada and the United States are irrelevant. We are honored to work with the U.S. Government to fortify our joint supply chain for critical minerals,” said Electra CEO Trent Mell.
The $250-million refinery project, located in Temiskaming Shores north of Toronto, is set to be one of the world’s most environmentally friendly, with construction progressing and specialized equipment already on-site. The plant, once fully operational, is expected to produce 6,500 tonnes of cobalt annually, enough to support the manufacture of over 1 million electric vehicles each year.
Electra has an agreement with LG Energy Solution to purchase up to 80% of the refinery’s output over the initial five years, with additional buyers vying for the remaining production.
Future plans include a potential second cobalt sulfate facility in Bécancour, Quebec, and a strategically positioned nickel sulfate plant in North America.