Feds invest $250K toward proposed EV battery park
The federal government has announced it will invest $250,000 to support Electra Battery Materials Corporation as the company conducts a scoping study to develop two battery production lines in Northern Ontario.
Electra is the only North American producer of cobalt sulfate for electric vehicle batteries. The company is investigating whether to expand its existing cobalt refinery in Temiskaming Shores into North America’s only fully integrated battery materials park.
The funding announcement from the federal government on March 2 comes days after the provincial government said it would contribute $250,000 of its own toward the project.
The federal funding is being provided through FedNor’s Regional Economic Growth through Innovation program. The government says the money will enable Electra to evaluate the technical requirements, risks and benefits associated with the continued development and successful completion of its Battery Materials Park over the next three years.
“The demand for electric vehicles is increasing and Northern Ontario is poised to take advantage of the opportunities the changing market is presenting,” said Patty Hajdu, the federal minister responsible for FedNor, and Member of Parliament for Thunder Bay–Superior North. “Our government is pleased to support this project that will enable Electra Battery Materials Corporation to expand its operations, create well-paying jobs for Canadians, reduce the company’s environmental footprint and increase its global competitiveness in the electric vehicle parts and battery manufacturing supply chain.”
Electra’s existing cobalt refinery is expected to supply battery grade cobalt sulfate for up to 1.5 million fully electric vehicles on an annual basis. With the development of a fully integrated battery materials park, the potential expansion opportunities in the medium- and long-term could support the manufacturing of millions of new vehicles annually. The expansion is focused on additional areas of the supply chain, namely nickel sulfate production and the production of precursor cathode active materials in Ontario.
Once complete, the Battery Materials Park will encompass cobalt sulfate, nickel sulfate, cathode precursor materials production, as well as lithium-ion battery recycling operations. Operations will commence with cobalt sulfate towards the end of 2022, followed by battery recycling in mid-2023. These facilities are currently in construction. The successful completion of the study will lead to construction of nickel sulfate and precursor materials plants, with operations tentatively set to begin in 2025.
The Battery Materials Park will support Canada’s continued economic growth as the world moves towards a future of electric mobility and renewable energy. This investment in the Battery Park Study also helps advance the Canada-U.S. Joint Action Plan for Critical Minerals Collaboration by strengthening the North American supply chain security for this critical battery mineral. While both Canada and the US have an abundance of critical minerals in the ground, projects such as Electra’s Battery Materials Park, are needed to process these materials so that they can be used domestically.
“We are delighted to partner with Canada on this Battery Materials Park project,” said Electra President and CEO Trent Mell. “Ontario is home to North America’s only battery-grade cobalt refinery, an abundance of nickel, and clean hydroelectric power. Together, we can leverage Electra's existing footprint and the Government of Canada’s ambitions to build a world-class battery supply chain."
In December 2020, the Government of Canada and Province of Ontario announced an investment of $10 Million to establish North America’s first cobalt refinery in Northern Ontario and accelerate domestic production of battery-grade cobalt sulfate, a required element needed to produce long-range electric vehicles.