Electra Battery Materials has reached a deal with Eurasian Resources Group (ERG) to procure cobalt for its refinery north of Toronto.
The three-year supply deal will be effective from 1 April 2024. It will see ERG deliver 3,000 tonnes per annum of IRA (Inflation Reduction Act)-compliant cobalt to Electra's refinery, beginning in 2026.
Aided by this deal, Electra will have enough cobalt hydroxide feed material to fulfil the refinery's full annual capacity.
ERG CEO Benedikt Sobotka said: “ERG is a responsible global player who supports the green energy transition.
“Electra was one of the first companies to achieve localisation of the upstream supply chain, supporting the industry’s move towards an entirely integrated battery supply model and putting battery metals at the core of industry's related efforts.”
ERG will source the cobalt from its Metalkol operation in the DRC.
This move supports efforts to reduce reliance on foreign refiners and aligns with the IRA, which incentivises the use of domestically sourced critical minerals in electric vehicles (EVs).
ERG's cobalt hydroxide, an intermediate product from mining operations, is the preferred feedstock for refining battery-grade cobalt sulphate.
The collaboration between Electra and ERG may extend to Electra's plans for a second cobalt refinery in Bécancour, Quebec.
Electra's refinery complex, upon completion, will be the first in North America to integrate the production of critical minerals, with the capacity to produce cobalt for up to 1.5 million EVs per year.
In Canada, Electra's low-carbon hydrometallurgical refinery, with an estimated replacement value of around $200m (C$270.44m), is already permitted. Another $60m is needed to complete construction.
Electra CEO Trent Mell said: “Partnering with a recognised leader in sustainable mining practices is essential for Electra to produce secure, clean and ethically sourced battery materials.
“Electra’s Canadian refinery is uniquely positioned as North America’s first cobalt sulphate refinery, with IRA-compliant feedstock to support growing EV demand. We are very proud to have ERG, one of the best cobalt hydroxide suppliers in the world, as a partner.”
