The U.S. Department of Defense has awarded Electra Battery Materials Corporation $20 million under Title III of the Defense Production Act to support the development of North America’s only cobalt sulfate refinery. This funding, provided through the Ukraine Supplemental Appropriations Act, is intended to increase domestic production capacity for battery grade materials essential to lithium-ion batteries.
Located in Temiskaming Shores, Ontario, the $250 million refinery project is designed to produce 6,500 metric tons of cobalt per year, potentially supporting the production of more than 1 million electric vehicles per year. The facility is expected to have the lowest carbon footprint for cobalt production in the world.
Electra CEO Trent Mell highlighted the importance of the project in strengthening the North American battery supply chain. The initiative addresses the current dominance of Chinese production, which accounts for over 80% of global battery grade cobalt production.
LG Energy Solution has committed to purchase up to 80% of the refinery’s capacity for the first five years of operation. The cobalt feedstock will be sourced from mines in the Democratic Republic of Congo operated by Glencore and Eurasian Resources Group, adhering to ethical sourcing standards.
Electra’s strategic plans extend beyond cobalt refining to include the recycling of lithium, nickel and other critical minerals from batteries. The company is also evaluating the potential for a second cobalt sulphate facility in Bécancour, Quebec, and a North American nickel sulphate facility.
This Defense Production Act funding points to the strategic importance of establishing secure domestic supply chains for critical materials in North America. The initiative aligns with both U.S. and Canadian goals to create a robust and independent battery manufacturing ecosystem in the region.
Source: Electra Battery Materials, U.S. Department of Defense
