Electra Battery Materials (TSXV: ELBM) has secured every tonne of cobalt it needs to start up its refinery, clearing one of the larger hurdles that had been hanging over the project.
The company said it extended its cobalt hydroxide purchase agreement with Glencore AG through December 31, 2031, covering 100% of the feedstock required for commissioning and ramp-up of its Ontario refinery through 2027. The deal spans roughly 10,000 metric tonnes of contained cobalt over five years, which is said to be worth more than US$500 million worth at current prices.
Delivery timing is flexible under the agreement, allowing shipments to be matched to the actual pace of commissioning rather than a fixed calendar. Past 2027, Electra retains the ability to supplement Glencore’s volumes with hydroxide sourced elsewhere.
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That material feeds a plant designed to turn out 5,120 tonnes of contained cobalt a year initially, with crystallizer nameplate capacity of up to 6,500 tonnes annually. The end product is cobalt sulfate, the battery-grade input that goes into electric-vehicle cathodes. Electra describes the facility as the only cobalt sulfate refinery in North America, which is a distinction that matters in a market where refining capacity sits overwhelmingly offshore.
“This is a cornerstone commercial relationship as we advance toward mechanical completion of the refinery in 2027,” said Michael Insulan, vice president, commercial. The two companies have worked together since 2021.
The sales side is largely spoken for as well. Electra signed an updated binding term sheet with LG Energy Solution in March, committing roughly 60% of planned cobalt sulfate output through 2029, with an option to extend to 2032.
Construction, meanwhile, is running across several fronts at once. Engineering is substantially complete, with piping isometrics released to the mechanical contractor. Electra has awarded a C$26 million contract to WB Melback Corporation for the solvent extraction and crystallizer circuits and a C$6.8 million piping package to Pro Pipe Construction Ltd., while a structural, mechanical and piping agreement with Kilmarnock Enterprises is being finalized.
Concrete piers and pump bases are in at the solvent extraction area, structural steel is going up and process equipment has been set. Reinforcing steel and concrete work is progressing in the crystallizer building.
Select commissioning activities are slated to begin in the fourth quarter of 2026, with mechanical completion targeted for the second quarter of 2027, full commissioning and ramp up in the third quarter, and commercial production by year end.
Electra Battery Materials last traded at $0.83 on the TSX Venture.
