Electra Battery Materials has received $20m from the US Department of Defense under Title III of the Defense Production Act (DPA) to support the development of a cobalt sulphate refinery in Toronto, Canada.
The funding, facilitated through the Additional Ukraine Supplemental Appropriations Act, aims to bolster domestic production capabilities.
Electra plans to use the funds for the construction and commissioning of North America’s sole cobalt sulphate refinery.
Situated north of Toronto in Temiskaming Shores, the $250m refinery will have the world’s lowest carbon footprint.
The expansion of an existing plant is in progress, with necessary permits acquired, construction advancing and most long-lead custom equipment already on-site.
The facility is expected to yield 6,500 tonnes of cobalt annually, sufficient to support the manufacture of more than one million electric vehicles (EVs) each year.
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By GlobalData
LG Energy Solution has committed to purchasing up to 80% of the refinery’s capacity for the first five years of operation.
The cobalt feedstock will be responsibly sourced from Glencore and Eurasian Resources Group mines in the Democratic Republic of Congo (DRC).
Electra is also considering the development of a second cobalt sulphate facility in Bécancour, Quebec, and a strategically positioned nickel sulfate plant in North America.
Electra CEO Trent Mell said: “Electra is committed to strengthening the resiliency of the North American battery supply chain.
“We are grateful to the US 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 US Government to build a strong North American supply chain for critical minerals.”
