Electra Battery Materials and LG Energy Solution have agreed to update their multi-year supply arrangement for battery-grade cobalt sourced from Electra’s Ontario refinery. The binding term sheet, finalized on March 6, 2026, extends the partnership and confirms LG Energy Solution as a key customer in supporting a resilient North American critical minerals supply chain.
Under the revised agreement, LG Energy Solution will offtake 60% of Electra’s cobalt sulfate output through 2029, with an option to extend those terms to 2032. The remaining 40% of capacity remains uncommitted, providing Electra with flexibility to benefit from future market pricing.
Since early 2025, cobalt sulfate prices have risen more than 90%, creating a favorable environment for Electra’s refining operations.
This update follows the initial three-year contract signed in 2022 and a five-year extension announced in July 2023, reflecting adjustments in the refinery’s production schedule. Electra approved a US$73 million construction budget in February 2026 and has initiated active work on North America’s first dedicated battery-grade cobalt sulfate refinery. The project aims for early commissioning of select processing circuits in the fourth quarter of 2026 and a full production ramp-up throughout 2027, targeting commercial output by the end of that year.
The brownfield facility is designed to produce 5,120 tonnes per annum of contained cobalt, with a crystallizer nameplate capacity expandable to 6,500 tonnes.
Once operational, it will serve as a domestic supplier to electric vehicle manufacturers and energy storage developers across North America, reducing reliance on foreign supply chains.
Beyond the refinery, Electra holds mineral rights in Idaho’s Cobalt Belt, including the Iron Creek project, and is advancing battery recycling initiatives to recover critical materials from end-of-life cells. The company continues to evaluate growth opportunities in nickel refining and other downstream battery materials to strengthen the region’s critical minerals processing capabilities.
