The rush for the Democratic Republic of Congo’s (DRC) abundant natural resources, valued at $24 trillion, continues as Electra Battery Materials announces a significant agreement with Eurasian Resources Group (ERG) for Congolese cobalt supply.
As per the agreement, ERG will provide 3,000 tonnes of cobalt hydroxide annually from its Metalkol operation in the DRC to Electra, facilitating a steady supply for a refinery near Toronto starting in 2026.
This strategic move aligns with the United States’ mineral security strategy, particularly in meeting the demand for cobalt essential in electric vehicle (EV) batteries.
The partnership complies with the American Inflation Reduction Act (IRA), further incentivizing EV adoption with subsidies.
Electra anticipates its Canadian refinery to support the power needs of up to 1.5 million vehicles annually, positioning it as a leading cobalt sulfate refinery in North America.
CEO Trent Mell expressed pride in the partnership, citing ERG’s reputation as a top cobalt hydroxide supplier.
Cobalt production in the DRC is on the rise, with data from the Central Bank of Congo (BCC) indicating a significant output of 139,838 tonnes during the 2023 fiscal year.
