Funding in place to build northern Ont. cobalt refinery

Electra Battery Materials says it has the funding it needs to build North America's first cobalt sulfate refinery, located in Temiskaming Shores.

Electra Battery Materials says it now has the funding it needs to build North America’s first cobalt sulfate refinery, which will be located in northern Ontario.

Once up and running, the Temiskaming Shores refinery will produce refined cobalt, a key part in manufacturing batteries for electric vehicles.

Currently, the North American market relies on China for 94 per cent of its refined cobalt.

Electra said it has US$82 million from governments and investors, and has concluded a debt equalization process, reducing its total debt from US$67 million to US$27 million.

The federal and provincial governments have provided funding for the refinery, and the U.S. Department of Defense is providing $20 million.

“With all capital secured, Electra is entering the execution phase with a clear path toward first production at its Temiskaming Shores site in Ontario,” Electra said in a news release this week.

First one on the continent

“Once operational, the refinery will be the first facility on the continent to produce battery-grade cobalt sulfate -- a key ingredient for electric vehicle batteries and energy storage systems -- helping to reduce North America’s reliance on foreign processing.”

CEO Trent Mell said that securing financing is “a turning point” for the company.

“With construction of our cobalt refinery now fully funded and our balance sheet reset, we are entering the execution phase with the resources and focus needed to deliver this strategically important project,” Mell said in the release.

“This marks a turning point for Electra and a critical step in reshoring essential parts of the battery supply chain.”

The refinery would add around 50 new jobs and produce 6,500 tonnes of battery-grade cobalt sulfate annually. That’s enough to support domestic production of up to one million electric vehicles.

The plan is to sell up to 80 per cent of the material to LG Energy Solution Ltd., a South Korean battery manufacturer partnering with automakers to build plants in Canada and the U.S.

In addition to electric vehicle batteries, the refined cobalt will be used for national defence and grid infrastructure applications.

“This milestone caps a year of strategic progress for Electra, including board additions that strengthen expertise in industrial policy, national security, and supply chain resilience,” the company said.

Electra aims to complete construction in 2026, with production operations starting in 2027.