Electra receives federal financial commitment for North America’s first cobalt sulfate refinery

Electra Battery Materials has announced a conditional contribution from the federal government to support completion of North America’s first and only cobalt sulfate refinery, located in the town of Temiskaming Shores in Northern Ontario.

To date, Electra has arranged $54 million in non-dilutive funding, including $34 million in government support – comprised of both a binding contract and a non-binding letter of intent – and a $20 million strategic investment proposal. In 2023, Electra estimated the capital cost to complete the cobalt refinery at $60 million, excluding first fills and commissioning costs. Additional non-dilutive funding options are in active development.

“Canada, with its abundance of critical mineral resources, is uniquely positioned to play an important role in the global energy transition. It is important that the government be there,” Nickel Belt MP Marc Serré said in a news release. “Electra’s project will provide Canada with a high-quality critical mineral input that will contribute to the net-zero economy and strengthen our mining industry.”

During a site tour, Electra’s team shared updates on progress toward commissioning and discussed the critical role the refinery will play in strengthening North America’s electric vehicle supply chain. With more than 90% of cobalt sulfate production in China, Electra will be one of the few providers of cobalt in the industry without any “foreign entity of concern involvement” and the only one of its kind on the continent.

“This site visit demonstrates government engagement in building a domestic critical minerals supply chain,” Electra CEO Trent Mell said. “We are proud to be leading the way with a facility that will produce sustainable, battery-grade material for the EV market.”

Electra expects the facility to produce about 6,500 tons of cobalt per year, which would support the production of up to one million electric vehicles annually.