Electra Battery Materials Corporation, a leading company in the field of battery materials, has announced that it has received a $5 million grant from the Government of Canada to support the construction of its cobalt sulfate refinery in Temiskaming Shores, Ontario.

The refinery will be the first of its kind in North America, producing high-quality cobalt sulfate that is essential for the manufacturing of lithium-ion batteries for electric vehicles (EVs).

The grant will be provided by the Federal Economic Development Initiative for Northern Ontario (FedNor), a program that aims to foster economic growth and diversification in the region.

Electra’s CEO Trent Mell expressed his gratitude for the government’s investment, saying that it demonstrates Canada’s leadership and vision in the global battery supply chain, as well as its commitment to a sustainable and green future for the transportation sector. He added that the grant will help Electra achieve its goal of producing secure, clean, and ethically sourced materials that are in high demand for the rapidly growing EV market.

The announcement was made by Marc G. Serré, Member of Parliament for Nickel Belt and Parliamentary Secretary to the Minister of Energy and Natural Resources and to the Minister of Official Languages, and Anthony Rota, Member of Parliament for Nipissing-Timiskaming, who visited the site of the refinery and praised Electra’s innovative and environmentally friendly approach.

Electra’s refinery complex will have the unique capability of integrating the production of critical minerals, such as cobalt sulfate and nickel sulfate, from both primary and secondary sources. The primary sources will include mined ore from Electra’s own projects in Canada and the United States, as well as from other partners. The secondary sources will include black mass material, which is a by-product of recycling used lithium-ion batteries. Electra has developed a proprietary process to recover high value elements from black mass, such as lithium, nickel, cobalt, manganese, graphite, and copper, and to produce battery grade products.

Electra has successfully operated a plant scale battery recycling trial at its refinery complex in 2023, processing more than 40 tonnes of black mass material and generating high-quality nickel, cobalt and lithium products. The trial has proven the technical and economic feasibility of Electra’s process, as well as its environmental and social benefits.

Once fully operational, the refinery complex will have an annual production capacity of 25,000 tonnes of cobalt contained in sulfate, which could supply enough cobalt for up to 1.5 million EVs per year. Electra has already secured a long-term agreement with LG Energy Solution, one of the world’s leading manufacturers of lithium-ion batteries, to supply up to 80% of its expected annual cobalt production, starting from 2025. The agreement was extended and expanded from its initial terms in July 2023, reflecting the strong partnership and confidence between the two companies.

Electra’s refinery complex represents a significant investment in the North American EV supply chain, which is expected to create hundreds of direct and indirect jobs, generate millions of dollars in revenues, and reduce the reliance on foreign imports of battery materials. The refinery complex has a current replacement cost of over $250 million, and has been derisked by the delivery of most long lead equipment and by the commissioning of the legacy refinery operations for the black mass demonstration plant. Electra is confident that it will complete the construction and start the production of cobalt sulfate by 2025, and become a key player in the North American EV battery ecosystem.