US Awards $20 Million to Electra Battery Materials

The U.S. Department of Defense has awarded $20 million to Electra Battery Materials Corporation to support the construction of North America's only cobalt sulfate refinery, located in Temiskaming Shores, Ontario. This project aims to bolster domestic production of critical battery materials, reducing reliance on Chinese sources, which currently supply over 80% of battery-grade cobalt. The facility is expected to produce 6,500 tons of cobalt annually, enough to support over 1 million electric vehicles, and integrates efforts in black mass recycling and nickel refining. Electra's CEO, Trent Mell, emphasized the importance of this funding for enhancing the North American battery supply chain, viewing it as a key partnership with the U.S. government. The funding comes from the Ukraine Supplemental Appropriations Act of 2022 and aligns with national security goals outlined in the 2024 National Defense Industrial Strategy. Construction is underway, with plans for the $250 million project to have a minimized carbon footprint.