Electra Battery Materials Corporation has signed a term sheet with Invest Ontario for C$17.5 million in proposed support toward its planned cobalt sulfate refinery in Temiskaming Shores, Ontario. The funding forms part of an estimated C$100 million investment to complete construction of North America’s first dedicated battery-grade cobalt sulfate facility.
Once operational, the refinery is expected to produce 6,500 tonnes of battery-grade cobalt sulfate annually—sufficient to supply enough material for about one million electric vehicles per year. With over 90% of the global cobalt sulfate market currently supplied from China, the new facility will be among the few outside those supply chains, reinforcing regional economic and energy security. It is also anticipated to create more than 50 direct jobs in the region and strengthen Ontario’s critical minerals processing network.
“We are focused on completing North America’s first cobalt sulfate refinery and unlocking the jobs and economic activity that come with it,” said Electra CEO Trent Mell. “We are grateful for the support from Invest Ontario, which will help accelerate construction and reinforces confidence in the strategic importance of our project. Establishing a domestic supply of battery-grade cobalt is essential to reducing reliance on foreign-controlled supply chains, safeguarding economic and energy security, and ensuring that Canada plays a leading role in the global energy transition.”
The C$17.5 million commitment complements a broader, trilateral government support package. In August 2024, the U.S. Department of Defense awarded US$20 million toward the project, and Electra is in ongoing discussions with the federal government of Canada. Together, these contributions amount to approximately C$64 million (roughly US$48 million). To advance its financing plan, Electra has launched a restructuring initiative targeting a reduction of about 60% in convertible debt and a US$30 million equity raise.
“Under the leadership of Premier Ford, our government is building a strong, self-reliant economy that integrates Northern Ontario’s vast mineral wealth with Southern Ontario’s manufacturing might,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Electra’s investment in Temiskaming Shores will establish an integral link in the province’s critical mineral processing supply chains and fuel the next stages of Ontario’s leadership in electric vehicle battery manufacturing.”
Beyond cobalt sulfate, Electra is pursuing integrated battery recycling at its Temiskaming Shores complex and has begun feasibility engineering for an adjacent recycling refinery. The company is also evaluating potential sites for a second cobalt sulfate plant in Bécancour, Quebec, as well as a North American nickel sulfate facility.
The term sheet outlines the intent to finalize definitive agreements but is non-binding. Discussions between Electra and Invest Ontario remain ongoing, and a binding funding agreement has not yet been executed.
