Electra Battery Materials Corporation (ELBM-X) has signed a term sheet for $17.5 million in funding from Invest Ontario to support construction of its cobalt sulphate refinery planned for Temiskaming Shores.

Expected to be the first facility in North America dedicated to producing the battery-grade material when it begins operations, it is designed to produce 6,500 tonnes of cobalt sulphate per year. That volume would support production of up to one million electric vehicles.

“We are focused on completing North America’s first cobalt sulphate refinery and unlocking the jobs and economic activity that come with it,” Trent Mell, CEO of the Toronto-based battery materials company, said in the announcement.

The latest funding from the Ontario government, announced Friday morning, is part of a $100-million investment for the refinery planned for Northern Ontario. The announcement notes the new funding is not yet fully committed as Electra and the government "work toward completing definitive documentation."

It replaces a US$20-million corporate investment announced September 2024, and supplements government aid from the U.S. Department of Defense’s US$20-million award in August 2024 and ongoing discussions with the Canadian government.

Electra could potentially secure approximately $64 million in government support, the company said. To further raise funds, it launched a comprehensive restructuring which includes a plan to reduce its convertible debt and a US$30-million equity raise.

Electra's plans

A company with plans to refine, process and recycle in order to produce materials for the batteries that power electric vehicles, Electra has hit significant snags on the way to finishing its Temiskaming Shores refinery.

Construction was paused in 2023 due to supply chain issues, inflation and other problems, Northern Ontario Business reported. The cost of the project jumped, prompting a project review.

In July, Electra hit the restart button on early works construction with financial support from the Canadian and U.S. governments. Both countries have emphasized onshoring critical minerals due to tensions with the Chinese government. China’s economy dominates the critical minerals sector, which is crucial to the clean energy transition.

A new timeline for the refinery was not disclosed in the latest announcement.

Other than the Temiskaming Shores refinery, Electra commenced a feasibility-level engineering study to build a battery recycling refinery adjacent to the facility. It is designed to process end-of-life batteries and battery materials to recover the valuable minerals. Electra created a joint venture named Aki Battery Recycling with Three Fires Group for this project.

The company is also considering a second cobalt sulphate facility in Bécancour, Que., an area that is quickly becoming a battery manufacturing hub, and a nickel sulphate plant in North America.