Electra secures $20 million for cobalt refinery in Ontario

Electra Battery Materials Corporation has announced that it received a Letter of Intent for $20 million in funding from the Canadian government. This money will help finish the construction of North America's first battery-grade cobalt refinery. The refinery aims to boost domestic production of cobalt, a key component in electric vehicles (EVs), allowing for the potential production of one million EVs each year. Electra's CEO, Trent Mell, expressed gratitude for the government's support. He emphasized the importance of this project for North American energy security and mineral independence, especially given that about 90% of the world's cobalt is currently refined in China. The refinery is set to be located in Temiskaming Shores, Ontario, and is expected to have one of the lowest carbon footprints among similar facilities globally. LG Energy Solution has expressed interest in purchasing up to 80% of the cobalt produced at Electra's refinery. The company is working quickly to finalize discussions with the government and resume construction, as most permits and infrastructure are already in place. Officials, including Minister Anita Anand, highlighted Canada's potential in critical minerals processing and the importance of these minerals for a low-carbon economy. The project is seen as a significant step in strengthening Canada’s mining industry and supporting its transition to a sustainable economy. While the Letter of Intent is non-binding, it indicates a commitment to move forward. Electra plans to produce around 6,500 tonnes of cobalt annually, contributing to a more self-reliant and resilient North American supply chain. The company is also exploring further opportunities, such as a battery recycling facility and additional refining plants in Quebec.