Electra Battery Materials has signed a binding investment agreement with the Canada government to support development of a battery-grade cobalt sulfate refinery in Temiskaming Shores, Ontario.
The agreement converts previously announced government backing into a formal funding commitment totaling 20 million Canadian dollars ($14.6 million), which will be used for eligible project costs associated with completing and commissioning the refinery.
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Earlier in 2024, the Canadian government had already approved an additional C$5 million grant for the project.
Electra said construction of the refinery is expected to be completed during the second quarter of 2027. Once operational, the facility is projected to produce approximately 5,120 tonnes of battery-grade cobalt annually, with future expansion plans targeting 6,500 tonnes per year.
The refinery is intended to become the first facility in North America dedicated to producing battery-grade cobalt sulfate, a material widely used in electric vehicle batteries and energy storage technologies.
The company said the construction and commissioning phase is expected to require between 150 and 200 workers, including contractors and direct employees. Long-term operations are projected to support around 60 permanent jobs and more than 100 indirect regional jobs.
“At full capacity, the facility will represent a significant global source of refined cobalt, a critical input for defence systems, consumer electronics and advanced energy storage technologies,” Electra said in a statement.
A substantial portion of the refinery’s output is expected to be supplied to LG Energy Solution under an offtake agreement announced earlier this year.
David Stetson, chairman of Electra Battery Materials, said the company had assembled the assets and partnerships necessary to advance the project.
“Electra has assembled the assets, partnerships, and leadership required to build a strategically important business in the North American battery materials supply chain, and I have strong confidence in the Company’s ability to deliver,” Stetson said.
“I also want to recognize the support of the Government of Canada for this important project,” he added.
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Tim Hodgson, Canada’s minister of energy and natural resources, said the investment would strengthen domestic critical mineral supply chains and support the country’s clean technology sector.
“Canada has the critical minerals the world wants – and we can turn those resources into good jobs, stronger industry, and more secure supply chains,” Hodgson said.
“By investing in the Temiskaming Shores Facility, we are investing in Northern Ontario, in the clean technology transition, and in building Canada strong,” he added.
