Ontario to invest $17.5M in support for Electra Battery’s new cobalt refinery

The Government of Ontario has announced a proposed investment of $17.5 million to support the construction of a cobalt sulfate refinery by Electra Battery Materials Corporation in Temiskaming Shores. The funding, provided through Invest Ontario, is part of a broader C$100 million project aimed at increasing domestic capacity for processing critical minerals used in electric vehicle batteries.

The facility, once completed, will be the first in North America dedicated to producing battery-grade cobalt sulfate, a key component in lithium-ion batteries used in electric vehicles. Once fully operational, Electra’s refinery will reportedly support the production of nearly 6,500 tonnes of cobalt annually, strengthening a critical part of Ontario’s electric vehicle (EV) battery supply chain.

According to the Ontario government, Electra’s project aligns with the stated goals of the province’s Critical Minerals Strategy, which seeks to meet the global demand for critical minerals by leveraging Ontario’s natural resources through increased domestic processing capacity.

In a press statement, Electra said the facility will “serve as the foundation for future growth initiatives, supporting Electra’s plans to produce other battery materials to strengthen the resiliency of the North American supply chain.”

Electra also noted that it has recently commenced a feasibility-level engineering study to build a battery recycling refinery adjacent to its cobalt refinery. The company said it is also contemplating a second cobalt sulfate facility in Bécancour, Quebec and a strategically located North American nickel sulfate plant.