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| Electra Battery Materials |
Government Funding to Boost Domestic EV Supply Chain and Critical Mineral Independence
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) has received a Letter of Intent (“LOI”) for $20 million in proposed funding from the Government of Canada. This funding will support the completion of North America’s first battery-grade cobalt refinery, enabling the domestic production of up to one million electric vehicles (EVs) annually.
Electra CEO Trent Mell emphasized the significance of this funding: “We are grateful to be working with the Government of Canada. Today’s announcement underscores their commitment to advancing North American energy security and critical mineral independence. Electra’s refining complex is a cornerstone of this collective effort, strengthening and diversifying the region’s critical minerals supply chain. By addressing domestic shortfalls and reducing reliance on China—where approximately 90% of the world’s cobalt is currently refined—we are fostering a more resilient, sustainable, and self-reliant future for North America.”
Strengthening Canada’s Critical Minerals Supply Chain
LG Energy Solution has already committed to purchasing up to 80% of Electra’s future cobalt production, with additional buyer interest far exceeding capacity. With infrastructure in place, permits secured, and key equipment on-site, Electra aims to finalize negotiations with the Government of Canada and swiftly resume construction of the refinery.
The Honourable Anita Anand, Minister of Innovation, Science and Industry, highlighted Canada’s critical role: “Canada has everything it takes to be a leading force in critical minerals processing, manufacturing, and recycling. Critical minerals are essential to power a low-carbon economy.”
Marc G. Serré, Parliamentary Secretary to the Minister of Energy and Natural Resources, echoed these sentiments: “Canada, with its abundance of critical mineral resources, is uniquely positioned to play an important role in the global energy transition. Electra’s project will provide Canada with a high-quality critical mineral input that will contribute to the net-zero economy and strengthen our mining industry.”
Electra’s Role in Sustainable Battery Materials Production
The LOI, agreed to on January 27, 2025, is non-binding but signals strong governmental support. Electra’s refinery, located in Temiskaming Shores, north of Toronto, is projected to have the lowest carbon footprint of any similar facility worldwide. Once fully operational, the refinery will produce 6,500 tonnes of cobalt sulfate per year, supporting the production of up to one million EVs annually.
Beyond cobalt refining, Electra is actively expanding its battery material production capabilities. In 2023, the company successfully operated a pilot battery recycling plant, recovering lithium, nickel, cobalt, and other critical minerals. Now, Electra is conducting feasibility studies for a full-scale battery recycling refinery adjacent to its cobalt facility. Additionally, plans are underway for a second cobalt sulfate refinery in Bécancour, Quebec, and a North American nickel sulfate plant.
“Our Temiskaming Shores refinery complex is the first step in Electra’s vision,” Mell stated. “We are building the right assets at the right time and are extremely well-positioned to leverage this refinery to grow alongside the EV and battery markets.”
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