The United States Department of Defense has provided Electra Battery Materials with a boost of $20 million (US) support the construction and commissioning of the company’s Northern Ontario cobalt sulfate refinery.

The US government made the award through its Defense Production Act to expand domestic production capability. Electra’s plant is the only one of its kind in North America, and more than 80% of the world’s battery-grade cobalt is currently produced in China.

“Electra is committed to strengthening the resiliency of the North American battery supply chain,” said Electra CEO, Trent Mell. “We are grateful to the U.S. Department of Defense for its support. On issues of national security, there are no borders between Canada and the United States. We are proud to partner with the U.S. Government to build a strong North American supply chain for critical minerals.”

Electra’s $250-million refinery project is located north of Toronto, in Temiskaming Shores, and is projected to have the lowest carbon footprint in the world. The company is expanding an existing plant, with construction well underway and most long lead custom equipment at site.

Once fully commissioned, the facility will produce 6,500 tonnes of cobalt per year, which would support the production of over 1 million electric vehicles annually.

Electra says LG Energy Solution has committed to purchase up to 80% of capacity over the first five years, with several other buyers competing for the remaining production.

In addition to cobalt refining, Electra plans to produce other battery materials that will strengthen the resiliency of the North American supply chain. In 2023, the company operated a plant-scale black mass demonstration plant at its refinery complex, recovering lithium, nickel, cobalt and other critical minerals from batteries.

The company is also contemplating a second cobalt sulfate facility in Bécancour, Quebec and a strategically located North American nickel sulfate plant.