Electra Battery Materials has finalized an agreement with Eurasian Resources Group (ERG) to procure cobalt for its refinery located north of Toronto.
The three-year supply agreement, effective from April 1, 2024, stipulates that ERG will deliver 3,000 tonnes annually of IRA (Inflation Reduction Act)-compliant cobalt to Electra’s refinery, commencing in 2026.
With this partnership, Electra ensures a sufficient supply of cobalt hydroxide feed material to meet the refinery’s annual capacity.
ERG CEO Benedikt Sobotka emphasized the company’s commitment to supporting the global transition to green energy, praising Electra as a pioneer in localizing the upstream supply chain and promoting an integrated battery supply model.
ERG will source the cobalt from its Metalkol operation in the Democratic Republic of Congo (DRC), aligning with efforts to reduce dependence on foreign refiners and comply with the IRA’s mandate to prioritize domestically sourced critical minerals for electric vehicles (EVs).
The cobalt hydroxide supplied by ERG, derived from mining operations, serves as the preferred feedstock for refining battery-grade cobalt sulphate.
Furthermore, the collaboration between Electra and ERG may extend to Electra’s proposed second cobalt refinery in Bécancour, Quebec.
Upon completion, Electra’s refinery complex will be the first in North America to integrate critical minerals production, with the capacity to support up to 1.5 million EVs annually.
Electra’s low-carbon hydrometallurgical refinery in Canada, with an estimated value of approximately $200 million (C$270.44 million), is already permitted, with an additional $60 million required to finalize construction.
Trent Mell, Electra’s CEO, underscored the importance of partnering with a reputable leader in sustainable mining practices to ensure the production of secure, clean, and ethically sourced battery materials.
He highlighted Electra’s refinery as uniquely positioned to cater to North America’s growing EV demand, supported by IRA-compliant feedstock and backed by ERG’s expertise as a premier cobalt hydroxide supplier.
