The federal government said Friday it is willing to provide the remaining $20 million needed to bring Electra Battery Materials Corp.‘s cobalt refinery into production.
The funding will help ensure North America’s first battery-grade cobalt refinery will begin operations, enabling domestic production of up to one million electric vehicles annually.
The letter of intent (LOI) for the funding was agreed to in late January. While not yet a binding agreement, the LOI means the federal government wants to negotiate with Electra to sign a deal to provide the funding.
“We are grateful to be working with the Government of Canada. Today’s announcement underscores their commitment to advancing North American energy security and critical mineral independence,” Electra CEO Trent Mell said in a news release.
“Electra’s refining complex is a cornerstone of this collective effort, providing a strategically unique solution to strengthen and diversify the region’s critical minerals supply chain.”
Mell said Electra’s facility will reduce global reliance on China, where 94 per cent of the world’s cobalt is currently refined.
South Korean buyer
“We are fostering a more resilient, sustainable, and self-reliant future for North America,” he said.
“LG Energy Solution (of South Korea) will purchase up to 80 per cent of our future production and buyer interest for the remainder far exceeds our capacity.”
Last year, the U.S. Pentagon announced $20 million in financing for Electra. Friday’s announcement of a letter of intent with the federal government means the company is closer to having the $80 million needed to complete construction.
Electra said it intends to complete discussions with the federal government as soon as possible so it can move ahead with the project.
Anita Anand, Minister of Innovation, Science and Industry, said the goal is to make Canada a leader in critical minerals processing, manufacturing and recycling.
“Critical minerals are essential to power a low-carbon economy,” Anand said in the release.
“I am interested in seeing how this develops, as Electra’s proposal may positively impact Canada’s critical minerals processing in Canada.”
Nickel Belt MP said Marc G. Serré, who is also Parliamentary Secretary to the Minister of Energy and Natural Resources, said Canada will play a critical role in the global energy transition.
“As the demand for critical minerals increases, along with the clean energy and technologies they enable, our high environmental social governance standards and the expertise of our workforce will be critical advantages in the low-carbon economy of the future,” Serré said in the 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.”
While discussions between the parties are ongoing, there is no guarantee or assurance that final agreements will be reached and/or funding will be provided to the company.
The refinery project is located in the Town of Temiskaming Shores and is projected to have the lowest carbon footprint of any refinery of its kind in the world.
Once fully commissioned, the facility will produce 6,500 tonnes of cobalt per year, which would support the production of up to 1 million EVs annually.
In addition to cobalt refining, Electra plans to produce other battery materials that will strengthen the resiliency of the North American supply chain.
Electra recently commenced a feasibility-level engineering study to build a battery recycling refinery adjacent to its cobalt refinery.
The company is also contemplating a second cobalt sulfate facility in Bécancour, Quebec and a strategically located North American nickel sulfate plant.
“Our Temiskaming Shores refinery complex is the first step in Electra’s vision,” Mell said.
“We are building the right assets at the right time and are extremely well-positioned to leverage the refinery complex to grow along with the EV and battery markets.”
Click here for more information about Electra.
Correction
This story has been updated to reflect the fact Electra still needs to raise more money to open the facility.
