Electra Battery Materials Corporation has signed a term sheet for CDN$17.5 million in proposed funding from Invest Ontario to advance construction of its cobalt sulfate refinery in Temiskaming Shores. Once completed, the facility would be the first in North America dedicated to producing battery-grade cobalt sulfate, a key material used in electric vehicle (EV) batteries.
The refinery is expected to produce 6,500 tonnes of cobalt sulfate annually, or enough to supply battery production for up to one million EVs per year.
Today, more than 90% of the global cobalt sulfate supply originates in China.
Establishing a domestic source of this material is viewed as important for strengthening North America’s EV supply chain, reducing reliance on foreign-controlled sources, and aligning with government requirements for locally sourced critical minerals.
Electra has also operated a demonstration-scale battery recycling facility at the site, recovering lithium, nickel, cobalt, and other minerals from end-of-life batteries.
The company is evaluating expansion options, including a recycling refinery adjacent to the cobalt facility, a potential second cobalt sulfate facility in Québec, and a nickel sulfate plant in North America.
Ontario’s C$17.5 million commitment forms part of a broader government funding package, alongside awards from the US Department of Defense and ongoing discussions with the Government of Canada. Electra’s overall financing plan includes approximately C$100 million in investment to complete construction, as well as a restructuring and equity raise.
Why this matters:
- Cobalt sulfate is essential for many EV battery chemistries, particularly nickel-manganese-cobalt (NMC).
- North America currently has no domestic production of battery-grade cobalt sulfate.
- A refinery in Ontario would help secure materials for EV manufacturing across the US and Canada, reduce supply chain risk, and support regional compliance with EV sourcing rules.
Filed Under: Batteries, Technology News