Electra Battery Materials Corp. said Wednesday it has finalized a deal with a provincial agency for $17.5 million in funding to support the construction of a cobalt sulfate refinery in Temiskaming Shores. The money was initially announced in September 2025, pending due diligence and finalizing agreements with Invest Ontario. In a news release Aug. 26, Electra said that the process is complete. “We are grateful to Invest Ontario and the Government of Ontario for their continued partnership on this strategic asset,” Trent Mell, CEO of Electra, said in the release. “We are focused on completing North America’s first cobalt sulfate refinery and creating the long-term employment and economic activities that come with it.” The refinery is estimated to cost close to $100 million, with the goal of opening in the second quarter of 2027. To begin production in 2027 Once commissioned, the refinery will produce about 5,120 tonnes of battery-grade cobalt in 2027, increasing to 6,500 tonnes over time. The federal government has also committed $20 million to the refinery, along with $20 million from the Pentagon and internal and private-sector funding. Once operational, the majority of the refined sulphate will be sold to LG Energy Solution Ltd., a South Korean battery manufacturer partnering with automakers to build plants in Canada and the U.S. Electra also has agreements with Glencore for 10,000 tonnes of cobalt feed in a deal that runs through 2031. “Cobalt sulfate is a critical mineral with applications spanning defence, electronics and energy, yet the vast majority of the world’s supply is refined in China,” the release said. “Electra’s refinery is designed to bring this capability to North America, giving allied manufacturers a secure, transparent source of supply and reducing reliance on foreign-controlled production.” Mell said the refinery is a big step in securing critical minerals supply chains, since refineries are a major gap. “Refining remains one of the most strategically important -- and least developed -- links in the critical minerals supply chain,” he said. “The province’s partnership is helping bring that strategic capability to Ontario while supporting long-term employment, opportunities for local businesses and regional economic development in the North.” For more information on Electra, click here.
