Connect with us

Hi, what are you looking for?

Tradings Insight HubTradings Insight Hub

Investing News

Electra Secures Federal Support for North America’s Only Cobalt Sulfate Refinery

Electra Battery Materials (TSXV:ELBM,NASDAQ:ELBM) announced on March 21 that it has received a letter of intent from the Canadian government for C$20 million in proposed funding.

The money would support the construction and commissioning of North America’s first battery-grade cobalt refinery, a critical step toward strengthening the region’s electric vehicle (EV) supply chain.

The refinery, located in Temiskaming Shores, Ontario, is set to produce 6,500 metric tons of cobalt sulfate annually, enabling domestic production of up to 1 million EVs per year. According to Electra, it would be a key step in reducing North America’s dependence on China, which currently refines approximately 90 percent of the world’s cobalt.

“We are grateful to be working with the Government of Canada,” said CEO Trent Mell. “Today’s announcement underscores their commitment to advancing North American energy security and critical mineral independence.”

Mell further noted that the company has already secured commitments from major buyers, with LG Energy Solution (KRX:373220) set to purchase up to 80 percent of the refinery’s future output.

“Buyer interest for the remainder far exceeds our capacity,” he added.

Anita Anand likewise emphasized the strategic importance of domestic mineral processing.

“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,” said Canada’s minister of innovation, science and industry.

With necessary permits in place, infrastructure largely developed and advanced negotiations with the government ongoing, Electra aims to finalize discussions quickly and resume construction.

The non-binding letter of intent, which was agreed to on January 27, signals the government’s intent to work toward a final agreement, but does not yet guarantee funding. If finalized, the investment would accelerate construction and commissioning of the refinery, which is projected to have the lowest carbon footprint of any facility of its kind worldwide.

Beyond cobalt refining, Electra is exploring expansion into other battery materials.

In 2023, the company successfully operated a battery recycling demonstration plant at its Temiskaming Shores complex, recovering lithium, nickel, cobalt and other critical minerals from spent batteries.

This year, Electra commenced a feasibility study for a battery recycling refinery adjacent to its cobalt refinery. It is considering a second cobalt sulfate facility in Bécancour, Québec, as well as a North American nickel sulfate plant.

“Our Temiskaming Shores refinery complex is the first step in Electra’s vision,” noted Mell.

“We are building the right assets at the right time and are extremely well-positioned to leverage the refinery complex to grow along with the EV and battery markets,’ emphasizing the need for secure sources of battery materials.

Electra’s refinery will be one of the few cobalt suppliers outside of China that is free from Foreign Entity of Concern involvement, reinforcing supply chain resilience for North American automakers.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

You May Also Like

Investing News

Rare earth metal production was on the rise again in 2023, jumping to 350,000 metric tons (MT) worldwide — that’s up significantly from 190,000...

Investing News

While gold is seen as a stable asset, it’s not immune to gains and losses. For this reason, understanding the trends that move the...

Investing News

~Greenlane to supply complete landfill gas-to-biomethane upgrading solution to repeat customer~ Greenlane Renewables Inc. ( ‘Greenlane ‘) (TSX: GRN) (FSE: 52G) is pleased to announce...

Business News

Tesla on Friday unveiled a restyled, made-in-China Model 3 with a longer driving range, the first time the automaker has launched a new model in...

Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Copyright © 2024 TradingsInsightHub.com All Rights Reserved.