Electra Battery Materials Corporation has finalized a binding $20 million investment agreement with the Government of Canada under the Strategic Response Fund to support construction and commissioning of a battery-grade cobalt sulfate refinery in Temiskaming Shores, Ontario. This federal funding is intended to turn previously announced support into a firm commitment, advancing North America’s only facility of its kind.
The agreement follows extensive due diligence and discussions since initial support was confirmed in 2025. Mechanical completion of the refinery is scheduled for the second quarter of 2027, with first production targeted later that year. At initial capacity, the plant is expected to produce approximately 5,120 tonnes of battery-grade cobalt sulfate in 2027, ramping up to 6,500 tonnes annually at full capacity. A majority of output will be supplied to LG Energy Solution under an existing offtake arrangement.
The funding package includes both repayable and non-repayable contributions, subject to customary government terms. Repayment of the loan portion will occur over a defined period following project completion.
Regional economic benefits are significant. During construction and ramp-up, Electra anticipates hiring 150 to 200 workers through direct employment and contractor agreements. Once operational, the facility will sustain about 60 permanent positions and more than 100 additional indirect jobs in the region. Electra is prioritizing local sourcing and partnerships with Canadian contractors to bolster Northern Ontario’s industrial base.
Government leaders emphasized the strategic importance of onshoring critical mineral processing. The Minister of Industry noted that the investment strengthens Canada’s ability to refine critical minerals domestically, creating high-quality jobs and supporting long-term economic growth. The Minister of Energy and Natural Resources highlighted the role of the refinery in securing supply chains for clean technology and bolstering regional development.
Electra’s chief executive officer stated that the company remains focused on execution, targeting first production in 2027 and establishing a reliable domestic source of cobalt sulfate. The project aligns with policy objectives in Canada and the United States to localize critical mineral processing and strengthen energy transition infrastructure.
